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US Department Of Justice Investigating Google's Acquisition Of AdMeld

Internet giant Google is being investigated by the US Department of Justice (DOJ) for possible antitrust violations related to the company’s proposed acquisition of AdMeld.

In the past few years Google has been aggressive in seeking and acquiring major web companies including YouTube, DoubleClick and now AdMeld, whose technology helps web publishers manage and tune display ads.

The acquisition spree has helped the company make rapid strides in the display ad market, overtaking traditional rival Yahoo, who once held the top spot for online ad revenues.

According to a report in the Wall Street Journal (opens in new tab) the DOJ is eager to explore the possible implications of Google's acquisition on the competitivity of the online ad market if.

In the first quarter of 2011 Google’s share of online display ad market rose to 14.7% from 13.3% while its rival Yahoo’s share shrunk from 13.6% to 12.3%.

Apart from the DOJ, Google is also being investigated by the US Federal Trade Commission for its dominant position in the search ad market. While Google has a slight advantage over Yahoo and other firms in the display ad market, it is in a much stronger position in the search ad market. Google has been aided by the fact that its search engine far surpasses all others in terms of users.