FTC Investigates AdMob Acquisition By Google

Search engine giant Google has confirmed in a blog post that its acquisition deal with Admob, a mobile advertisement platform, is being carefully reviewed by the United States Federal Trade Commission.

The watchdog has made a "second request" to the company asking for further details regarding the deal.

The blog post was made by Google"s Group Product Manager, Paul Feng, who wrote that "While this means we won't be closing right away, we're confident that the FTC will conclude that the rapidly growing mobile advertising space will remain highly competitive after this deal closes."

Last month when the search engine giant had announced plans to acquire Admob for $750 million, a leader in its segment, it had also said that the company expected government regulators to investigate the deal more closely due to Google"s dominant position in the search engine market.

Google went on to create a web page specially designed for the media and regulators, explaining them why the company thought that the deal was not a threat to competition.

Central to the FTC's concerns about the acquisition is the fact that Admob is one of the largest mobile advertising networks in the world with billions of targeted mobile adverts delivered every month in more than 160 countries.

Our Comments

In effect, the purchase of Admob by Google would give it a headstart overnight in a red-hot segment and could forge an even more dominant position in a market that doesn't have big players for now.

Related Links

Google's AdMon Purchase Draws Regulatory Scrutiny

(Business Week)

FTC asks for more info on Google-AdMob deal

(ZD Net Asia)

Google's Admob plans scrutinised by US regulator

(BBC News)

Google's dominance draws interest of regulators

(SF Gate)