Earlier in September, Microsoft announced their plans to purchase Nokia’s smartphone division
for a whopping $7.17 billion. This was hardly a done deal as regulatory bodies are expected to conduct their due diligence on either company and the deal to ensure that it meets certain guidelines, and that through this deal it will not allow Microsoft to become a monopoly of sorts. In any case so far it seems that the deal has not been thrown any curve balls or run into any obstacles, at least until recently when the Delhi High Court in India decided to announce an interim stay on the Microsoft-Nokia deal, at least until Nokia pays their fine for alleged tax violation.
The Indian Income Tax Department slapped Nokia with a fine of Rs. 2,000 crore back in March for alleged tax violations, a move which Nokia has since been fighting against. However the Delhi High Court has decided that until this matter has been resolved, the Microsoft and Nokia deal should be placed on hold, at least to prevent Nokia from disposing any of their properties or assets in the country once the deal goes through. According to Nokia India’s lawyers, “so far no agreement has been executed for transfer of the India business and no value has been ascribed for this either.”
Filed in Legal, Microsoft and Nokia.
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