29 May 2007

Google - DoubleClick deal facing FTC probe

Google's planned $3.1 billion (1.5 billion pounds) acquisition of online advertising company DoubleClick is being probed by the Federal Trade Commission (FTC).

The FTC launched the preliminary antitrust investigation late last week, after it was revealed by an industry executive that the FTC and not the Justice Department would conduct the inquiry.

Google announced plans to purchase New York-based DoubleClick last month and a review was widely anticipated.

DoubleClick allows customers to place and track online advertising, including search ads, which have previously proved lucrative for Google.

The deal prompted privacy advocates and competitors to raise concerns when it was revealed and the size of the proposed acquisition meant an inquiry was a certainty.

Don Harrison, the senior corporate counsel for Google, revealed in a statement on Monday that the purchase poses "no risk to competition and should be approved".

"Numerous independent analysts and academics have determined after looking at this acquisition that the online advertising industry is a dynamic and evolving space - as evidenced by a number of recently announced acquisitions - and that rich competition in this industry will bring more relevant ads to consumers and more choices for advertisers and website publishers," added Harrison.

Marc Rotenberg, executive director of privacy rights group Electronic Privacy Information Center, told the New York Times: "We think it's very important that the FTC is taking a look at the Google-DoubleClick deal."

Microsoft and AT&T were among Google's competitors which called for the antitrust review.

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