Menu
EU approves Google-DoubleClick deal

EU approves Google-DoubleClick deal

But companies reminded to respect EU legislation on privacy of personal data

Google's acquisition of DoubleClick does not pose a significant threat to competition in the European online advertising market, the European Commission said this week. However, it reminded the companies that they also have an obligation to respect European Union legislation on the privacy of personal data, one of the grounds on which opponents lobbied to block the merger.

The Commission's decision removed the last obstacle to completion of the deal, which has now closed, Google said.

Together, Google and DoubleClick will be able to deliver more relevant advertising and improve the effectiveness, measurability and performance of digital media for publishers, advertisers and agencies.

The EU's competition regulator reached its decision after a four-month in-depth investigation of the US$3.1 billion merger, which received the approval of the US Federal Trade Commission in December.

The deal is unlikely to harm consumers in ad serving or online advertising intermediation markets, the Commission said.

A merger of Google and DoubleClick will not hurt competition because the companies are not competitors, the Commission said: Google provides online advertising space on its own sites and, as operator of the AdSense service, an intermediary between publishers and advertisers, while DoubleClick offers ad serving, management and reporting services to publishers, advertisers and agencies.

The Commission also examined the risk of Google tying sales of its services to use of those of DoubleClick, or vice versa, to boost revenue. However, it concluded that Microsoft, Yahoo and AOL present sufficiently strong market alternatives that a merged Google-DoubleClick would be unable to exploit the link in that way.

The Association for Competitive Technology (ACT), a Washington, DC, lobby group for small and midsize entrepreneurial technology companies, welcomed the Commission's decision.

"It demonstrates both the dynamism of our industry and the need to give companies the flexibility necessary to adapt, compete, and meet the needs of consumers," wrote ACT President Jonathan Zuck.

"The merger will undoubtedly change the competitive landscape of our industry and fuel the evolution of internet advertising," he said.

Microsoft is likely to be the biggest beneficiary of the antitrust authorities' approvals, according to Jeff Chester of the Center for Digital Democracy, one of the lobby groups opposed to the merger.

Microsoft recently offered to buy Yahoo for US$44.6 billion. If that deal goes ahead it will almost certainly attract the scrutiny of antitrust regulators, as it unites the two biggest players in online advertising after Google.

"By permitting Google to dramatically grow in clout, regulators will have to likely permit the further growth of a number-two competitor to Google, which will be Microsoft," Chester said.

The result will be the emergence of a global digital duopoly over online advertising, Chester warned.

Tuesday's decision only relates to EU merger regulations, the Commission said, and does not alter the merged entity's obligations under E.U. law on the protection of individuals and the protection of privacy related to the processing of personal data.

Antitrust regulators have failed to respond to the growing consolidation of control over online ad delivery and data collection, a failure that will have unfortunate consequences for the Internet's role as a democratic communications medium, said Chester.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Brand Post

What to expect from your IT Distributor

Whether you’re just starting out or you’ve been around since before the dot com rollercoaster, choosing the right distribution partner can be a pivotal factor in your success. This definitive guide outlines the traits that every IT partner needs to look for in their IT Distributor.

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments