US Regulators Clear Google’s Plan To Acquire Online Advertising Giant DoubleClick

GoogleGoogle’s plan to acquire online advertising giant DoubleClick, which had sparked concerns about privacy risks and still facing a challenge in the European Union, was cleared by the US regulators on Thursday. On the other hand, the European consumer groups yesterday warned the European Commission that Google's plan to take over the online advertising company DoubleClick would erode consumers' privacy and would push up prices for online goods and services.

After a 4-1 vote to refrain from blocking the deal, the Federal Trade Commission said, "Although interested parties have raised concerns about the proposed acquisition's impact on consumer privacy, the commission observed that such issues are 'not unique to Google and DoubleClick,' and 'extend to the entire online advertising marketplace.”

According to the FTC, Google and DoubleClick "are not direct competitors in any relevant antitrust market."

Commissioner Pamela Jones Harbour voted no and issued a separate dissenting statement "because I make alternate predictions about where this market is heading, and the transformative role the combined Google/DoubleClick will play if the proposed acquisition is consummated."

However, some US activist groups said the deal would pose privacy risks by giving the Internet giant unprecedented access to personal data.

On the other side, in a letter to competition commissioner Neelie Kroes, BEUC, the pan-European Union consumer group, together with three national associations, urged the Commission to use its powers to block the deal in its current form.

Monique Goyens, BEUC's director general said, "Consumers' privacy could be at risk; it is crucial that the Commission integrates privacy concerns into the Google/DoubleClick merger review process.”

European antitrust authorities are expected to rule on the deal by April.

Google said the FTC actions shows the 3.1 billion-dollar acquisition would be a benefit and not a harm to consumers.

Eric Schmidt, Google's chairman and chief executive said, "The FTC's strong support sends a clear message: this acquisition poses no risk to competition and will benefit consumers. 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."