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US Congress to Investigate Google Purchase of DoubleClick
 

The US Senate Judiciary Committee will hold a hearing in September in which it will grill Google executives about the company's planned purchase of DoubleClick. As with other inquiries into this potential purchase--the US Federal Trade Commission (FTC) and European Union are both investigating as well--the hearing will seek answers on the anti-competitive and privacy issues the deal raises.

Privacy advocates and competitors have argued that the combination of Google and DoubleClick would effectively eliminate competition in the online advertising space. Google currently dominates search-based advertising, while DoubleClick is the largest player in traditional banner ads and other forms of Web advertising. The online ad market was worth $17 billion in 2006 in the US alone, and is of course growing each year.

Google argues that the online advertising market is highly competitive and that the purchase should be approved because Google doesn't directly compete with DoubleClick. "We are confident that this acquisition poses no risk to competition and should be approved," a Google spokesperson said. Competitors such as Microsoft and Yahoo! disagree, and in the wake of the Google/DoubleClick announcement, each has purchased minor players in DoubleClick's market in order to defend themselves against the possible purchase. Microsoft, for example, spent a whopping $6 billion on a company called aQuantive.







Reader Comments

I heard about this a while back - on Google News, no less.

MozillaGen -July 19, 2007

Time to start spending some of that excess cash on lawyers...

sx4sport@hotmail.com -July 20, 2007

"Privacy advocates and competitors have argued that the combination of Google and DoubleClick would effectively eliminate competition in the online advertising space." What. A. Crock. According to this article, even if Google and DoubleClick merged, their market share would still be less than 50 percent: http://tinyurl.com/yr3qt4 Microsoft, Yahoo and their cronies are spreading FOG (Fear of Google) like it's manure on a Saskatchewan wheat field. The truth doesn't matter, but shrill proclamations of "THE SKY IS FALLING AND GOOGLE HAS ALL THE NETS" get the attention. Tune it out and move along, folks. Nothing to see here.

lotsamystuff -July 20, 2007

"Tune it out and move along, folks. Nothing to see here." you're right losta. i don't put much belief in your comments already! XP

Waethorn -July 21, 2007
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