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.