Google Inc.'s (GOOG) acquisition of smartphone and tablet developer Motorola Mobility Holdings Inc. (MMI) was approved by the European Union on Monday, but EU antitrust authorities issued a stern warning that companies should stop using certain types of patents to sue each other.

"We have approved this acquisition because, upon careful examination, this transaction does not itself raise competition issues," EU Competition Commissioner Joaquin Almunia told reporters. "But we will not abandon monitoring of this issue."

Google said the approval was an important milestone moving the company closer to closing an acquisition that it says is very important to its mobile strategy.

"The combination of Google and Motorola Mobility will help supercharge Android," Google said, referring to its mobile operating system that is used in many smartphones.

The $12.5 billion transaction would give Google a powerful arsenal of patents to use in the increasing number of courtroom battles worldwide over the hotly-contested smartphone market.

The EU is paying special attention to standards-essential patents, which are necessary to make phones work with an industry standard, like 3G or WiFi.

Companies who hold these patents must license them to peers on a fair, reasonable, and non-discriminatory basis--known as "Frand." This means patents can't be used to stop rivals putting a product on the market or companies charging extraordinarily high royalty payments to prevent rivals using the technology.

"Today's decision does not mean the merger clearance blesses all actions by Motorola in the past or all future action by Google with regard to the use of standard essential patents," he said, noting that Motorola has some injunctions in Germany against Apple. In a recent court judgment, Apple Inc. (AAPL) got the sale of one Samsung tablet computer blocked in the country.

Earlier this month, the commission started a formal investigation into whether South Korea's Samsung Electronics Co. Ltd. (SSNHY, 005930.SE) is using standards-essential patents to sue rivals including Apple--he said the case is "a priority" today.

Almunia said he had started the case against Samsung because the company was using injunctions to try and block the sale of Apple's products, without having first offered to license access to the standards-essential patents on a Frand basis first--and that he is ready to do the same against other companies.

Samsung has said it believes the commission will ultimately conclude the company complies with the rules.

"We are aware of the increasingly strategic use of patents in the sector and are vigilant," Almunia said.

Almunia said the commission is trying to establish "rules of the game" for what it called a "patents war" between the various technology companies.

Almunia said that while companies have written to various standard-setting organizations, they have promised different levels of commitment to protecting and licensing the patents, which is a cause of concern for authorities.

Last week, Google sent letters to dozens of standards organizations promising that it would offer licenses for Frand patents in Motorola's portfolio, but in contrast to Apple and Microsoft Corp. (MSFT) it didn't rule out seeking injunctions against any potential violators.

The U.S. Justice Department must also rule on the proposed $12.5 billion acquisition, a decision which could also come this week.

While companies have the right to defend their innovations, there are limits when the patent in question is part of a standard, he stressed.

"The commission will continue to keep a close eye on the behaviour of all market players in the sector," he said.

-By Frances Robinson, Dow Jones Newswires; +32 2 741 1486; frances.robinson@dowjones.com

--Ian Sherr contributed to this article.

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