US clears Google to buy DoubleClick

21 December 2007

Google's $3.1 billion takeover of DoubleClick has been given the go-ahead by the US monopolies watchdog.

Google's internet search rivals had complained that the takeover, which would give the search giant ownership of one of the biggest companies serving online adverts, was a barrier to a competitive market.

However, the Federal Trade Commission (FTC) announced yesterday that the proposed deal had been approved by a 4-1 vote, and commented that the acquisition was "unlikely to substantially lessen competition".

The FTC also ruled that DoubleClick did not have sufficient "market power" for Google's buyout to give it an unfair advantage over its competitors.

The decision makes the takeover – already rubber-stamped by authorities in Australia and Brazil – more likely, but Google must wait for the European Commission to complete its investigation before moving ahead. The commission has set a date of 2 April for its judgement.

"The FTC's strong support sends a clear message: this acquisition poses no risk to competition and will benefit consumers," said Google chief executive Eric Schmidt.

"We hope that the European Commission will soon reach the same conclusion."

Commenting on the news, Spannerworks' head of natural search Nilhan Jayasinghe said: "This will take Google yet another step closer to its ambition of being the ultimate ad-platform.

"If they can work around the privacy issues (yet to be properly defined) Google's ability for personalised marketing will be unparalleled."

Category: Google, MSN, Natural search, Online marketing, Paid search, Search engines