| Google gets DoubleClick go-ahead from FTC |
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| Written by Stephen Withers | |
| Friday, 21 December 2007 | |
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"The FTC's strong support sends a clear message: this acquisition poses no risk to competition and will benefit consumers," said Eric Schmidt, chairman and CEO of Google. The FTC decided that the two companies were not direct competitors in any relevant antitrust market, even though they both deliver display ads to web sites. The agency also determined that the merger would not reduce potential competition in the third-party ad serving market due to "vigorous" competition that will likely increase. Since the FTC determined there was no evidence that DoubleClick has market power in the third-party ad serving market, it did not need to consider whether Google could exploit that power following an acquisition. But the decision to end the investigation was not unanimous, with one of the five commissioners voting against the ruling. Commissioner Pamela Jones Harbour wrote "I dissent because I make alternate predictions about where this market is heading, and the transformative role the combined Google/DoubleClick will play if the proposed acquisition is consummated." And while Commissioner Jon Leibowitz voted with the majority, he noted "both the serious vertical competition issues raised by Google's proposed acquisition of DoubleClick as well as the substantial privacy issues that, though in part brought to light by the deal, clearly transcend it." According to Schmidt, "For us, privacy does not begin or end with our purchase of DoubleClick." "We have been protecting our users' privacy since our inception, and will continue to innovate in how we safeguard their information and maintain their trust." Google officials cited other recent transactions as evidence of strong competition in the advertising market, including Microsoft's acquisition of aQuantive and AdECN. Yes, in business Newspeak, fewer players means more competition. "We hope that the European Commission will soon reach the same conclusion, and we are confident that this deal will deliver more relevant ads for consumers, more choices for advertisers, and more opportunities for website publishers," added Schmidt.
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