After 59 acquisitions, Google has hit a roadblock with one of its latest purchase attempts. Consumer groups have asked the Federal Trade Commission to block the search giant’s $750 million acquisition of AdMob, a mobile advertising company.
The Center for Digital Democracy and Consumer Watchdog said Google’s acquisition would be anticompetitive. Acquiring AdMob gives Google the tools it needs to more effectively create and analyze mobile-ad formats.
The groups want the FTC to not only investigate, but block the deal. They want the FTC to consider whether Google’s access to AdMob’s technology will give it an unfair advantage in selling mobile advertising.
“The mobile sector is the next frontier of the digital revolution,” said John Simpson, consumer advocate with Consumer Watchdog, and Jeffrey Chester, executive director of the CDD, in a joint letter to the FTC. “Without vigorous competition and strong privacy guarantees, this vital and growing segment of the online economy will be stifled.”
Making Its Case
Google was quick to respond to the complaint.
“We’re confident that the FTC will conclude that the rapidly growing mobile-advertising space will remain highly competitive after this deal closes,” said Adam Kovacevich, Google’s senior manager of global communications. “There are more than a dozen mobile-ad networks, and this deal is similar to mobile-advertising acquisitions that AOL, Microsoft and Yahoo have made in the past two years.”
The consumer groups’ letter charged, “Consumers will face higher prices, less innovation, and fewer choices.” But Google said its acquisition of AdMob will do the opposite.
“The deal will provide users with more free mobile applications, in some cases as an alternative to pay-to-download apps, since it will allow developers to subsidize their products through effective mobile advertising,” Kovacevich said.
Consumer privacy is also a concern for the consumer groups. Google responded that it has a track record of providing strong privacy-protection tools…
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