Regulators urged to block Google deal
By Diane Bartz |
December 30, 2009, Wednesday
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Print Edition
Print Edition
TWO advocacy groups have asked United States antitrust regulators to block Google's purchase of AdMob, a provider of advertising services for mobile phones, on antitrust grounds and to address privacy issues raised by the deal.
Consumer Watchdog, a consumer advocacy organization, and the Center for Digital Democracy, an advocate of open access to the Internet, said in a letter to the Federal Trade Commission that the proposed deal would "substantially lessen competition in the increasingly important mobile advertising market."
The groups also said the deal created privacy concerns, which are not normally considered in antitrust analyses.
"Google amasses a gold mine of data by tracking consumers' behavior as they use its search engine and other online services. Combining this information with information collected by AdMob would give Google a massive amount of consumer data to exploit for its benefit," the letter addressed to FTC Chairman Jon Leibowitz said.
Google has said the FTC requested additional information about the US$750 million deal last week. In the absence of a second request, US antitrust regulators normally approve deals within 30 days.
In a statement, Google said it was certain mobile advertising would remain competitive despite the deal.
Consumer Watchdog, a consumer advocacy organization, and the Center for Digital Democracy, an advocate of open access to the Internet, said in a letter to the Federal Trade Commission that the proposed deal would "substantially lessen competition in the increasingly important mobile advertising market."
The groups also said the deal created privacy concerns, which are not normally considered in antitrust analyses.
"Google amasses a gold mine of data by tracking consumers' behavior as they use its search engine and other online services. Combining this information with information collected by AdMob would give Google a massive amount of consumer data to exploit for its benefit," the letter addressed to FTC Chairman Jon Leibowitz said.
Google has said the FTC requested additional information about the US$750 million deal last week. In the absence of a second request, US antitrust regulators normally approve deals within 30 days.
In a statement, Google said it was certain mobile advertising would remain competitive despite the deal.
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