Motorola is inching closer to complete their merger with Google, but in the same time EU is trying to put some breaks on the deal, fearing that Google has become too powerful, and a $12.5 acquisition would make it even more powerful. Truth be told, I don't think Google buying Motorola would create anything negative in the market.
If anything, I think getting another healthy source of revenue, through hardware sales, would only make Google not care so much about wanting to increase their advertising revenues, which sometimes also means promoting some of their other services or collecting more user information.
I also think that Google buying Motorola would actually open the ecosystem more, because they will try to compete in the hardware market, by keeping their software very open, which many manufacturers still don't. And this will be a major win for consumers, which is what EU is really worried about - that Google becoming too powerful will negatively affect the consumers.
What I'm really excited about is seeing stock Android phone in the market, because I'm hoping that once the merger is complete and it's been a few months, all the new phones from Motorola will use Google's stock Android software, which is made completely by Google. Why would Google allow anyone to mess around with the software after they've already added what they think are the best features? If the Motorola side of the team has some other feature ideas, then they can just add those in the stock version, and Motorola will get to use stock Android with the other features anyway.
I really hope the deal goes through, because I'm excited about a future where Google has full control of the hardware, too, and they can show us perfect Android experience from top to bottom.