Google-DoubleClick deal gets EU scrutiny
European Union antitrust regulators launched an in-depth probe Tuesday into Google Inc.’s $3.1-billion bid for online ad broker DoubleClick, saying an initial investigation showed the deal would raise competition concerns.
The EU’s executive commission has set an April 2 deadline to reach a final decision on the deal, which has raised concerns by Google rivals Microsoft Corp. and Yahoo Inc. -- both of which fear it will give the Internet search leader too much power in online advertising.
The European Commission described Google and DoubleClick as “the leading providers” of online advertising space and services as well as ad-serving technology, and said its extended probe would examine whether the deal “could lead to anticompetitive restrictions for competitors operating in these markets and thus harm consumers.”
New York-based DoubleClick helps its customers place and track online advertising, including search ads, which Mountain View, Calif.-based Google has turned into an extremely lucrative business.
The EU said a preliminary probe, launched after Google notified the EU of its bid for DoubleClick in September, found the proposed acquisition “would raise competition concerns.”
Google Chief Executive Eric Schmidt said the company was “obviously disappointed” by the EU decision to extend the review.
“We will continue to work with the commission to demonstrate how our proposed acquisition will benefit publishers, advertisers and consumers,” Schmidt said in a statement. “We seek to avoid further delays that might put us at a disadvantage in competing fully against Microsoft, Yahoo, AOL and others whose acquisitions in the highly competitive online advertising market have already been approved.”
Yahoo Europe’s managing director, Toby Coppel, welcomed the EU investigation, saying it “was needed.”
“Competitive online advertising markets in Europe are of great importance to publishers and advertisers, as well as being key to innovation and consumer choice,” Coppel said.
Consumer advocates also have raised concerns about data privacy if the deal is approved.
