US anti-trust watchdog the Federal Trade Commission has approved Google's acquisition of mobile advertisement company AdMob.
The move has surprised some industry watchers, who believed that the FTC would halt the $750 million takeover because of competition issues.
The FTC has instead ruled that the launch by Apple of the iAd mobile advertisement service for its iPhone and iPad products will increase competition, balancing an online advertisement market that would otherwise have been dominated by Google and AdMob.
Talking to Reuters, a representative of the FTC said: “The decision was a difficult one because the parties (Google and AdMob) currently are the two leading mobile advertising networks, and the commission was concerned about the loss of head-to-head competition between them.”
Several mobile app developers, who earn revenues through advertisements on their applications, claimed that the approval will negatively affect them as they would now be required to go through Google to earn money from advertisements on their applications.