SubscribeU.S. regulators are reportedly digging deeper into Google’s planned AdMob acquisition. The Federal Trade Commission is asking for sworn statements from the search giant’s competitors and advertisers in what could signal plans to hold up the merger. The news comes as part of a wave of government scrutiny against the maturing company.
According to Bloomberg News, the FTC is seeking to learn whether Google’s proposed purchase of the mobile-ad technology provider would lessen competition in the market for Internet advertising on mobile phones. The FTC couldn’t immediately be reached for comment.
Bloomberg didn’t identify the names of two companies that said they were asked to sign statements for the probe. However, it’s likely that the FTC spoke with companies like Microsoft, Yahoo, Jumptap and Millenial Media, all of which have stakes in this growing space.
Will Google Dominate Mobile?
“We’re continuing to talk with the FTC and provide the information that they’ve asked for, but we’re not going to discuss the details of that process,” a Google spokesperson said. “We’re confident that they’ll conclude that the rapidly growing mobile-advertising space will remain highly competitive after this deal closes.”
Google announced plans to acquire AdMob for $750 million in stock in November. Although the FTC is concerned that the acquisition would reduce competition, Google painted a win-win picture, predicting the acquisition would enhance the company’s expertise and technology in mobile advertising and give advertisers and publishers more choice in the emerging mobile market.
Google is jockeying for position in a mobile market that is projected to be worth billions in just a few years. Jupiter Research issued a recent report, Mobile Advertising: Delivery Channels, Business Models & Forecasts, that predicts the mobile-advertising market will grow to $5.7 billion by 2014.
According to IDC, if the Google-AdMob merger is approved, it would create the mobile-advertising industry’s largest company….
Via NewsFactor
Yacine.org: FTC Probing Google’s Planned AdMob Acquisition http://yacine.org/2010/03/11/ftc-probing-googles-planned-admob-acquisition/
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