FTC Approves Google’s $3.1 Billion Acquisition Of DoubleClick; 4-1 In Favor; EU Hurdle Looms
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The FTC will not block Google’s $3.1 billion acquisition of DoubleClick. Commissioners voted 4-1 in favor of closing its investigation, with Pamela Jones Harbour as the lone dissenter. In its statement, the commission said the deal was not likely to substantially lessen competition. It also said that while there are issues over privacy, such concerns are not unique to Google (NSDQ: GOOG). Statement (.pdf)| Dissent (.pdf)
The big hurdle for the deal remains the EU, which may take as long as April before ruling. Beuc, a pan-European umbrella organizations for 41 consumer groups, lodged its objection to the deal this week. In a letter to commissioner Neelie Kroes, the group predicted that a Google “monopoly” would lead to reduced profits for ad-dependent publishers. It also warned that consumers would be harmed by increased prices and a loss of privacy. The organization is seen as influential given the EU’s sympathy to consumer rights. Full details at paidContent:UK. More after the break…
Update: FTC: “After carefully reviewing the evidence, we have concluded that Google’s proposed acquisition of DoubleClick is unlikely to substantially lessen competition.”
—Concurrent with the decision, the commission released a set of principles regarding privacy and online behavioral advertising. Release.
—Google: “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, Google. “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.” Release.
—Center For Digital Democracy: “(The FTC) having side-stepped its responsibility to protect both competition and privacy, advocates will press the European Commission to impose the necessary safeguards on the proposed Google acquisition of DoubleClick. Congress too will need to conduct oversight hearings into how the FTC conducted this merger review.”
Posted In: Advertising, Legal, Regulatory, FTC, Money, M&A & Venture Capital, Mergers & Acquisitions, Companies, Google, doubleclick, eu
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