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DoubleClick deal gets US go-ahead

Posted on 21 Dec 2007 at 08:13

The US Federal Trade Commission (FTC) has approved Google's $3.1 billion purchase of DoubleClick, ruling that the deal does not pose a threat to competition.

The decision was reached in a four to one vote, bringing to an end the FTC's eight month investigation. The dissenting vote maintains she still has concerns however.

"If the commission closes its investigation at this time, without imposing any conditions on the merger, neither the competition nor the privacy interests of consumers will have been adequately addressed," says Pamela Jones Harbour, an independent who voted against the deal.

In its statement, the FTC says it also investigated the consumer privacy issue, but concluded that the evidence did not show the merger would pose a problem.

"We want to be clear, however, that we will closely watch these markets and, should Google engage in unlawful tying or other anticompetitive conduct, the commission intends to act quickly."

Google says it hopes the European Commission will reach the same conclusion in its ongoing investigation.

"This acquisition poses no risk to competition and will benefit consumers," Google chief executive Eric Schmidt says.

A privacy group that opposed the deal claims the FTC has failed to protect Americans who use the internet.

"By permitting Google to combine the personal details, gleaned from our searches online and YouTube downloads, with the vast repository of information collected by DoubleClick, the FTC has sanctioned the creation of a new digital data colossus," says Jeff Chester of the Center for Digital Democracy.

Author: Reuters

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