Consumer Groups Criticize Google's AdMob Acquisition Deal

googleTwo dominant consumer groups have highly criticized Google's impending acquisition deal of AdMob, stressing that the Federal Trade Commission should altogether block it as the deal would diminish all competition in the mobile-advertising sector.

Post the takeover, Google would be given an unfair advantage and dominance in the mobile advertising market and this will hurt consumers, as has been stressed by the Center for Digital Democracy and Consumer Watchdog. The groups have confirmed that they have sent a joint letter to the FTC.

"Without vigorous competition and strong privacy guarantees this vital and growing segment of the online economy will be stifled", the consumer groups said in an official statement released on the matter.

World's largest and most popular search engine, Google, last month agreed to pay $750 Million in stock for the acquisition of AdMob. With the deal, the company is looking to boost its sales of ads that appear in mobile phone applications.

Karsten Weide, an analyst with researcher IDC in San Mateo, California, has shared that the fusing together of Google and AdMob would form the largest mobile-advertising firm ever which will have about 30-40% of the market share even before beginning.