Google has hired Apple’s former senior director of product integrity for a new secret project, according to a report from VentureBeat. The man in question is Simon Prakash, who worked at Apple for more than eight years. Prakash was responsible for the quality control at Apple, a company that has a long-standing reputation for quality. He will now reportedly be working in Google’s “X lab” on a secret project headed by Google co-founder Sergey Brin. It is speculated that the project could be hardware related, and it may tie in with the company’s pending acquisition of Motorola Mobility. Google and Apple are currently being investigated by the Department of Justice following accusations that the companies upheld an illegal “no poach” agreement along with Intel, Adobe, Intuit, Pixar and Lucasfilm.

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Barnes & Noble and Microsoft are currently tied up in two separate legal battles, one being heard by the Department of Justice and the other by the International Trade Commission. In March 2011, like previous Android vendors, Microsoft accused Barnes & Noble’s NOOK and NOOK Color of infringing on the company’s patents. The software giant, which takes in roughly $450 million a year through Android royalties, was looking to license the infringed patents to the bookseller, but the company fired back with claims that Microsoft was creating an abusive monopoly. It is now being suggested by patent expert Florian Muller of FOSS Patents that the ITC is likely to reject Barnes & Noble’s antitrust complaint against Microsoft, however. The complete order is not publicly available, but an administrative law judge has reportedly dismissed Barnes & Noble’s patent misuse defense against Microsoft . The judge issued a detailed order that has not yet been made public, but the headline reads, “Initial Determination Granting Microsoft’s Motion for Summary Determination of Respondents’ First Affirmative Defense of Patent Misuse.” The ITC evidentiary hearing will begin on Monday, February 6th.

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Third-party companies that stored Megaupload’s data may delete all user files on Thursday. Megaupload customers, even those not guilty of piracy or using the service illegally, have been unable to access their files since the website was shut down on January 19th. So far, seven men have been charged for illegally allowing Megaupload users to store and share music, movies and other copyrighted content, among other things. The issue, however, is that millions of Megaupload users used the service legally to store family photos and other personal data. Megaupload doesn’t store the data itself, the AP said Monday, instead it hired Carpathia Hosting and Cogent Communications Group to store its data. A letter from the U.S. Attorney’s Office for the Eastern District of Virginia explained that both companies may begin deleting the data as soon as this Thursday. 50 million users could have their personal photos, videos and music erased; Megaupload attorney Ira Rothken said the company is currently speaking with prosecutors in an effort to save the data.

UPDATE: Megaupload lawyer Ira Rothke on Monday confirmed that Megaupload’s hosting companies have agreed not to delete user files for two weeks, TVNZ reports. “Carpathia and Cogent agreed to preserve consumer data for additional time of at least two weeks so Megaupload can work with US on proposal,” Rothke posted on Twitter.

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The Department of Justice recently released information that suggests a number of large U.S. technology companies may have created secret “no poaching” agreements with one another. The companies that have been under investigation include Apple, Google, Intel, Adobe, Intuit, Pixar, Adobe and Lucasfilm. The alleged no poaching agreements may have been pretty scary: According to TechCrunch, which published the DoJ’s early findings, companies were told to deny offers to anyone who applied for a job voluntarily from competing firms, and were to alert the employee’s current boss. That’s in addition to agreeing not to steal employees from one another. In one excerpt, Adobe’s senior vice president of human resources said: “Bruce [Adobe's former CEO] and Steve Jobs have an agreement that we are not to solicit ANY Apple employees, and vice versa.” The results of the DoJ investigation will be revealed as part of a class-action lawsuit hearing in San Jose next week.

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The antitrust division of the United States Justice Department will investigate Verizon Wireless’s plans to acquire spectrum from Comcast and its partners for $3.6 billion. Verizon Wireless announced in early December its intentions to purchase 122 AWS spectrum licenses from SpectrumCo, a joint venture between Comcast, Time Warner Cable and Bright House Networks. The carrier said it plans to use the additional spectrum to build out its 4G LTE network, pending government approval of the purchase. The Justice Department has the power to block the deal, although it is unclear when the investigation will be concluded. 

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AT&T said Monday that it, along with Deutsche Telekom, has asked Judge Ellen Huvelle to delay any further court hearings regarding AT&T’s planned $39 billion acquisition of T-Mobile USA until January 18th, 2012. AT&T said the delay will “allow the two companies time to evaluate all options” and that the U.S. Justice Department also joined in on the filing. AT&T recently withdrew its merger application from the FCC to instead focus on the lawsuit that was brought against the merger by the Department of Justice. “AT&T is committed to working with Deutsche Telekom to find a solution that is in the best interests of our respective customers, shareholders and employees,” AT&T said in a statement. “We are actively considering whether and how to revise our current transaction to achieve the necessary regulatory approvals so that we can deliver the capacity enhancements and improved customer service that can only be derived from combining our two companies’ wireless assets.” The delay makes a lot of sense, since the Department of Justice doesn’t have much of a reason to sue AT&T unless it has a merger application filed with the FCC. ”It’s not a real transaction until they file with the FCC,” Justice Department lead attorney Joseph Wayland said last week. AT&T’s full press release follows after the break. 

AT&T UPDATES STATUS OF T-MOBILE USA MERGER

DALLAS, December, 12, 2011 – AT&T today issued the following statement regarding the status of its merger with T-Mobile USA:

“AT&T and Deutsche Telekom advised Judge Huvelle this morning that they wish to stay any further Court proceedings until January 18, 2012, to allow the two companies time to evaluate all options.  The U.S. Department of Justice joined in the filing.

“AT&T is committed to working with Deutsche Telekom to find a solution that is in the best interests of our respective customers, shareholders and employees.  We are actively considering whether and how to revise our current transaction to achieve the necessary regulatory approvals so that we can deliver the capacity enhancements and improved customer service that can only be derived from combining our two companies’ wireless assets.”

The Justice Department intends to file a motion next week to delay or dismiss its lawsuit against AT&T’s planned acquisition of T-Mobile USA. The DOJ originally sued AT&T to block the deal in August, and AT&T soon after decided to pull its merger application from the FCC to instead focus on the suit. In light of the withdrawal of AT&T’s merger application, however, the DOJ seemingly no longer has cause to sue. ”It’s not a real transaction until they file with the FCC,” Wayland told Judge Ellen Huvelle according to Reuters. With that, it looks we’re now watching at a giant game of cat and mouse. AT&T CEO Randall Stephenson recently said that U.S. regulators don’t understand the wireless industry enough to see the benefits of its proposed T-Mobile USA purchase. Earlier Friday he said in an interview that ”regulators can’t keep up with the changes in the industry” and that blocking the merger will increase wireless prices for U.S. consumers.

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AT&T may propose to divest as much as 40% of T-Mobile USA’s assets in an effort to win approval from the Department of Justice in an upcoming lawsuit against the government agency. The DOJ sued to block the merger on August 31st, when it said “AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market.” AT&T is planning to divest a lower percentage of spectrum and a higher share of T-Mobile USA’s customers, Bloomberg said Monday. The divestiture may not be enough to add balance to the market, however. “It’s unlikely that the DOJ would allow a big competitor like Verizon to purchase the assets,” Macquarie Securities analyst Kevin Smithen told Bloomberg, which means AT&T may need to rely on smaller regional carriers to pick up the customers and spectrum.

“[DOJ] guidelines require that any settlement or remedy replace the market power T-Mobile currently brings to the marketplace,” Sprint’s spokesperson for public policy John Taylor wrote on his personal blog. “Any new entity would have to create a nationwide network comparable to T-Mobile’s, which covers 97% of America… [and] offer exclusive handsets, just as T-Mobile does each year. AT&T would have to divest enough T-Mobile customers to ensure that any new entity or purchaser of the assets would have the same market share T-Mobile enjoys.”

Wall Street isn’t so sure the divestiture will help AT&T’s cause, either. “Realistically, AT&T is going to take its chances in court in February,” Sanford C. Bernstein analyst Craig Moffet said. “It’s all or nothing.”

On November 24th, AT&T withdrew its original application from the FCC to acquire T-Mobile USA and said it will instead focus on its lawsuit with the Department of Justice, which kicks off in February, before it reapplies for the FCC’s approval of the acquisition.

Read [Bloomberg] Read [John Taylor]

AT&T said Thursday that it has withdrawn its application from the Federal Communications Commission to acquire T-Mobile USA. AT&T and Deutsche Telekom said they will instead focus on fighting an antitrust lawsuit brought against the proposed $39 billion merger by the Department of Justice. AT&T made the announcement Thursday following the FCC’s decision earlier this week to hold an administrative hearing regarding the purchase. The FCC said it was unsure the acquisition would create jobs, as AT&T has promised. Read on for more.

“AT&T Inc. and Deutsche Telekom AG are continuing to pursue the sale of Deutsche Telekom’s U.S. wireless assets to AT&T and are taking this step to facilitate the consideration of all options at the FCC and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice either through the litigation pending before the United States District Court for the District of Columbia… or alternate means,” AT&T said in a statement. “As soon as practical, AT&T Inc. and Deutsche Telekom AG intend to seek the necessary FCC approval.”

AT&T also said that it expects to mark a $4 billion pretax charge in its fourth quarter 2011 earnings report that will reflect a potential breakup fee paid in cash and spectrum to Deutsche Telekom should the deal fall through. The full press release from AT&T follows below.

AT&T and Deutsche Telekom Continue to Pursue Sale of DT’s U.S. Wireless Assets

Companies Withdraw FCC Applications; AT&T Expects to Recognize $4 Billion Charge; Companies Focus on Gaining DOJ Approval

On Nov. 22, 2011, the Federal Communications Commission indicated a proposed order was circulating that would designate for hearing the applications of AT&T Inc. and Deutsche Telekom AG For Consent To Assign or Transfer Control of Licenses and Authorizations, WT Docket No. 11-65.  On November 23, 2011, AT&T Inc. and Deutsche Telekom AG electronically withdrew without prejudice, as of that date, the pending applications listed in the Public Notice released by the Federal Communications Commission on April 28, 2011 in that proceeding.  Associated manual notification of withdrawal filings also are being mad

AT&T Inc. and Deutsche Telekom AG are continuing to pursue the sale of Deutsche Telekom’s U.S. wireless assets to AT&T and are taking this step to facilitate the consideration of all options at the FCC and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice either through the litigation pending before the United States District Court for the District of Columbia, Case No. 1:11-cv-01560 (ESH) or alternate means.  As soon as practical, AT&T Inc. and Deutsche Telekom AG intend to seek the necessary FCC approval.

As a result of the FCC’s action, AT&T expects to recognize a pretax accounting charge of $4 billion ($3 billion cash and $1 billion book value of spectrum) in the 4^th quarter of 2011 to reflect the potential break up fees due Deutsche Telekom in the event the transaction does not receive regulatory approval.

AT&T on Tuesday issued a statement after the Federal Communications Commission took preliminary steps toward blocking AT&T’s proposed $39 billion acquisition of T-Mobile USA. The FCC said it is not convinced the merger will in fact create jobs as AT&T has promised, and it said it will hold an administrative hearing to examine the deal. The hearing, however, will not take place until after the Department of Justice’s lawsuit against the merger, which will go to trial in February 2012, runs its course. ”The FCC’s action today is disappointing,” AT&T’s senior vice president of Corporate Communications Larry Solomon said in a statement. ”It is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the US economy desperately needs both. At this time, we are reviewing all options.”

The Federal Communications Commission said Tuesday that it will hold an administrative hearing to examine AT&T’s planned acquisition of T-Mobile USA. The FCC said the hearing will not begin until after the Justice Department’s lawsuit against the merger, and that case isn’t expected to go to trial until February. The hearing was decided upon after the FCC concluded in a draft order that the AT&T/T-Mobile deal might not be in the best interest of the public and could result in job losses. The government agency also said that the burden will be on AT&T and T-Mobile to prove otherwise. Read on for more.

AT&T has long argued the deal will create “thousands” of jobs and improve wireless service in the United States. Additionally, the Communications Workers of America (CWA) has argued that the merger will create 96,000 jobs and bring another 5,000 back from overseas call centers.

Sprint recently filed a lawsuit in opposition of the merger, arguing that it will eliminate competition in the United States. In addition, the FCC said that AT&T has failed to address exactly how the merger will create new careers.

Should the Department of Justice lose the trial against AT&T, the FCC’s planned proceeding will continue unchanged. FCC Chairman Julius Genachowski also noted that the FCC has concluded a draft order  — by no means final — that has approved AT&T’s planned purchase of Qualcomm’s wireless spectrum, which it was reviewing at the same time as the T-Mobile deal.

AT&T originally expected the merger to close in March 2012 and earlier this month said it will close later than expected.

Vonya McCann, Sprint’s Senior Vice President for Government Affairs said Sprint’s statement on the matter is as follows:

As Chairman Genachowski said in August when the Justice Department filed its antitrust lawsuit against AT&T, the record before the FCC presented, ‘serious concerns about the impact of the proposed transaction on competition.’ That record is complete and more than justifies moving this matter to an Administrative Law Judge for a hearing. We appreciate Chairman Genachowski’s leadership on this issue and look forward to the FCC moving quickly to adopt a strong hearing designation order.

The United States Justice Department has issued a request for more information from Google and Motorola Mobility concerning the search giant’s planned $12.5 billion acquisition of the phone maker. Google senior vice president Dennis Woodside explained that his company is still confident the deal will be approved. “We believe very strongly this is a pro-competitive transaction that is good for Motorola Mobility, good for consumers, and good for our partners,” he said, noting the “second request” form the DOJ was routine. “While this means we won’t be closing right away, we’re confident that the DOJ will conclude that the rapidly growing mobile ecosystem will remain highly competitive after this deal closes. We’ll be working closely and cooperatively with them as they continue their review.” Google announced in August that it intends to purchase Motorola Mobility and, shortly after, CEO Larry Page noted that Motorola’s patent portfolio will help Google’s Android partners against competitors. Despite public statements in support of the acquisition from HTC, Samsung and other Android heavy hitters, BGR has argued the purchase could potentially spell trouble for Motorola’s competitors.

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The already-bloody battle over AT&T’s proposed $39 billion acquisition of T-Mobile USA recently became an all-out war. Sprint has been vocal with its opposition of the merger since day one, and comments from company CEO Dan Hesse on Wednesday may have shed some light on a previously undisclosed reason for Sprint’s stance. “I don’t believe that what the DOJ said in any way, not even a little bit, should be viewed as we want to keep four,” Hesse said at an investor conference. “My view is [the Justice Department] would look at other consolidation very differently.” Hesse went on to suggest that a “very strong argument” could be made that regulators would approve a merger between Sprint and T-Mobile. In light of these comments, AT&T has gone on record in stating that Sprint has been lying about its motives for the past several months. Read on for more.

“Yesterday, the CEO of Sprint said the Department of Justice should block AT&T from merging with T-Mobile, but would have good reasons to instead allow Sprint to purchase them,” Jim Cicconi, AT&T’s Senior Executive Vice President of External and Legislative Affairs, said in a statement delivered to BGR via email. ”For months Sprint has spoken disingenuously about their motives for opposing AT&T’s merger with T-Mobile. Now, Mr. Hesse’s public musings have made their motives much more clear. That they would act in their own economic interest is not surprising. That they would expect the United States Government to be a willing partner certainly is.”

In late August, the United States Department of Justice filed suit against AT&T in an attempt to block the T-Mobile merger. Sprint issued a statement later that day supporting the DOJ suit, stating, “By filing suit to block AT&T’s proposed takeover of T-Mobile, the DOJ has put consumers’ interests first.” AT&T responded as well by saying, “The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court.”

Verizon Communications chief executive Lowell McAdam has gone on record in suggesting that the company’s biggest rival, AT&T, should be allowed to complete its proposed $39 billion acquisition of T-Mobile USA. “That match had to occur,” McAdam said at an investor conference on Wednesday, warning that the government has no choice but to allow such mergers unless it can focus on getting telcos the increased spectrum they need to operate. He continued, “We need to be very thoughtful on what the impacts would be to the overall industry if this is a way to regulate the industry without actually passing regulation.” Read on for more.

“I have taken the position that the AT&T merger with T-Mobile was kind of like gravity,” McAdam told investors. “It had to occur, because you had a company with a T-Mobile that had the spectrum but didn’t have the capital to build it out. AT&T needed the spectrum, they didn’t have it in order to take care of their customers, and so that match had to occur.” The CEO continued, noting that he has told the Federal Communications Commission and other government officials that blocking AT&T’s acquisition of T-Mobile without providing a solution to the current spectrum crunch will ultimately harm American consumers.

The United States Justice Department filed suit against AT&T late last month in an attempt to block the T-Mobile merger. AT&T quickly responded, saying, “The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court.”

T-Mobile on Friday issued a new statement to the press, reasserting its belief that AT&T’s acquisition of T-Mobile USA will ultimately be approved. Last week, attorneys general from seven states joined the United Stated Department of Justice’s lawsuit attempting to block the $39 billion deal. The DOJ’s suit argues that the takeover would eliminate T-Mobile as “an independent, low- priced” wireless option for U.S. consumers, adding that it would also remove a great deal of competition from a market already dominated by giant telcos. T-Mobile’s senior vice president of government affairs Tom Sugrue disagrees, obviously, and he says the merger will benefit consumers rather than harm them. “Given the numerous benefits the merger will bring to consumers, businesses, and the US economy in the form of greater innovation, enhanced competition, and increased jobs, we remain confident that the facts will prevail and the acquisition will proceed,” Sugrue said in a statement to the press. AT&T and T-Mobile have made consistent arguments in favor of the deal since it was first proposed but the companies have a long battle ahead, with opponents that now include Sprint, multiple U.S. states and the U.S. government.