This post is not strictly about Competition Law, but then, life is about more than Competition Law. And as it is, the just announced Microsoft-Nokia buyout deserves a post !!
Lets consider the facts. Stephen Elop, who was heading Microsoft’s business software division, left Microsoft in 2010 to join Nokia, allegedly to lift Nokia out of the non-innovative rut which it had managed to get itself stuck in at the time, especially with Touchscreen phones and Smartphones. What did Nokia do under the leadership of its new C.E.O. ?? It tied up in a strategic partnership with Microsft to provide the software to its new line of “Lumia” smartphones. In addition to this, Nokia did not even try to pursue a growth startegy with the Android operating system on its phones. Correct me if am wrong, but not even a single Nokia Smartphone or Touchscreen phone is equipped with the Android operating system.
Furthermore, During the almost three years Stephen Elop was C.E.O. of Nokia, the Company fell from its position as the world’s largest smartphone vendor to assume the status of tenth largest. As a consequence, not only did Nokia obviously see its market share collapse, but more importantly, it’s share price literally shrivelled up to a pittance. Shares in Nokia may have surged around thirty percent to 4.01 Euros by late Tuesday, but while up from their decade-low of 1.33 Euros hit last year, they are still only a fraction of their year 2000 peak of 65 euros. It’s obvious that Microsoft is getting Nokia cheap.
I may sound like a conspiracy theorist here, but it almost seems Stephen Elop was SENT TO NOKIA WITH THE INTENTION FOR PREPARING IT’S MOBILE HANDSET BUSINESS FOR AN ACQUISITION BY MICROSOFT. What further lends credence to this theory is the fact that he will return to Microsoft to head the newly acquired Mobile Division.
In conclusion, unless Finnish and E.U. authorities wish to investigate, it does not seem as if the move was in any manner illegal. However, it does leave a bad taste in the mouth. Also, whether even this cut-throat strategy was worth it remains a question, considering Microsoft shareholders are less than impressed with the deal as of now. (Microsoft shares were down almost six percent at the time of publication fo this post.) And who can blame them ?? Windows phones haven’t been doing well in general, and the problem seems to be more with the acceptance of the software rather than there being anything wrong with the hardwware.
Indian Competition and Anti-Trust Blog 
do you see any opposition to this deal in India.. as in on a combination notice being filed.
Its a vertical acquisition per se, though previously also nokia used only microsoft OS or somestimes its own ASHA platform
A combination notice would definitely be required under Section 5 and Section 6 of the Competition Act. However, I don’t see any hurdles arising in the clearance of the Combination in India. One must understand that Microsoft is trying to once again enter a new market, i.e., mobile hardware and ancillary applications, its previous forays having miserably failed in the past. One can try to assess this Combination from two angles:
From the hardware perspective, Nokia is a shadow of its former self. As per latest available statistics, Nokia commands only 14.5 percent of the world mobile handset market share. In the case of India, the market needs to be divided into the smartphone market share and the feature phone market share. In the former, Nokia has a mere 5.4 percent market share. In the latter however, Nokia does command a significant 42 percent market share (approximately). Now from what I have come to understand, Microsoft wishes to focus on the “Lumia” smartphone range, even in India, so feature phones may lose their relevance in its strategy. Also, considering feature phones are starting to lose their relevance in general even in India, what with cheaper smartphones available, I personally do not believe this would be a good enough reason not to clear the Combination. At the maximum, certain commitments may be obtained on the management of the feature phone business.
From the software perspective, the windows operating system is as of now completely irrelevant, commanding a mere 3.7 percent market share, therefore clearly not a ground to question the acquisition.