Google Inc’s recently proposed acquisition of Motorola Mobility Holdings Inc raises some important economic issues about the merits or otherwise of vertical integration between device, platform and application providers in the communications sector. One concern for Google’s shareholders is that restricting access to a particular device, platform or application could easily alienate wholesale and retail customers, and may not be a successful long-term strategy for sales and profitability.
Frontier (Australia)’s latest bulletin examines firm strategy in the light of vertical integration in this sector.
For more information, please contact Marita O'Keeffe at m.okeeffe@frontier-economics.com.auor call +61 (0)3 9620 4488.
