EU holds on Google’s DoubleClick deal

Source: Technology Digital

Date :11/14/2007 7:13:53 AM

The European Union's antitrust authority yesterday held off approving Google's proposed $3.1 billion acquisition of ad company DoubleClick, instead subjecting the deal to further review.

The EC said in a statement that it will ‘investigate whether without this transaction, DoubleClick would have grown into an effective competitor of Google in the market for online ad intermediation.’

It will also investigate whether the merger ‘could lead to anti-competitive restrictions for competitors operating in these markets and thus harm consumers.’

Disquiet

News of this inquiry comes after the US Federal Trade Commission approaches the end of its own antitrust investigation into the deal. Google are thought to be expecting the outcome to be favorable, but the EU’s intervention has caused more than a little concern at the company.

We are obviously disappointed,” Eric E. Schmidt, chief executive of Google, said in a statement.

Revealing that the company would work with the Commission on the investigation, he added, “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.”

November 14, 2007