FTC Set To Investigate Google Admob Deal

News site Bloomberg has reported that the US competition watchdog, the Federal Trade Commission, is likely to oppose Google's $750 million acquisition of mobile advertisement firm AdMob, as it believes that the deal could cause serious anti-trust violations.

Citing sources familiar with the matter, an article on Bloomberg reported that the FTC has asked for sworn declarations or affidavits from Google, its competitors and other internet advertisement agencies in order to embark on a more thorough investigation into the acquisition deal.

As several legal experts seem positive that the government will move to stop the deal, Google representatives have repeatedly told the press that the company was working 'closely' with the FTC to dispel doubts about the deal and was providing information on a regular basis.

The FTC is trying to determine whether the Google-AdMob deal will restrict competition in the mobile internet advertisement market or not.

According to the article, the FTC has asked Google's competitors and other mobile internet advertisement agencies to submit their statements to the trade regulator and has also asked two companies to give signed statements.

The FTC will taking into account Google's dominant position in the internet search market in order to decide whether to halt the deal or give it a green light.

Our Comments

Google was unlikely to be given the green light that easily. The search giant has already attracted the attention of the European Competitions Commission and the scrutiny is likely to continue well into 2010.

Related Links

Google's AdMob move alerts antitrust lawyers

(Financial Times)

Feds likely to oppose Google mobile ad deal, says report

(The Register)

Google Deal to Buy AdMob Coming Under Scrutiny

(Cellular News)

Google-AdMob Deal Hits Another Setback