Chinese regulators are concerned Microsoft could use its patents to gain an edge in the local market. Over 80 percent of Chinese smartphones run Android, which Microsoft claims contains certain technologies on which it holds patents.
To prevent the patent abuse, Microsoft has promised it won't use "fundamental patents" to seek a product ban on Android handset makers. Nor will the company seek to increase their patent licensing fees following the acquisition.
In cases involving less important patents, Microsoft can seek a product ban if the vendor conducted "negotiations not in good faith," according to the Chinese ministry. Microsoft's promise on fundamental patents will last indefinitely; the promise on non-fundamental patents for eight years.
In addition, Nokia has also agreed to license its fundamental patents fairly to vendors.
Nokia and Microsoft have now received regulatory approvals from the People's Republic of China, the European Commission, the U.S. Department of Justice and numerous other jurisdictions.
The two companies continue to expect the transaction to close during April 2014.