Print 9 comment(s) - last by sprockkets.. on May 12 at 9:27 PM

Google CEO Eric Schmidt
Federal regulators have extended the review, with Google and AdMob's permission

Google's acquisition of AdMob for $750M USD was announced in November 2009 and promised to give Google's Android phone a powerful monetization tool by bringing dedicated mobile advertising.  The move in part was seen as a catalyst in convincing rival Apple to scoop up rival mobile ad firm Quattro Wireless, a $275M USD deal announced in January.

The Federal Trade Commission has been investigating Google's purchase and is trying to decide whether to let it go through.  It has made several requests for information.

Now it has announced a two week extension to its review process, which was supposed to expire Monday.  The extension was approved by Google and AdMob, and is actually good news for Google.

The feds will use the extra time to look at the effects of Apple's rival acquisition and its upcoming iAds.  This is good news for Google as it means that the AdMob deal is less likely to look to give the company an overly dominant position and thus is more likely to go through.

One factor that is complicating the investigation is Apple's unwillingness to provide federal investigators with information on its iAd plans.  Apple is notorious for being secretive and despite recent breaches, it tends to try to not share info on upcoming products with anyone -- even the government.

Analysts are divided on whether the deal should go through.  Some say that blocking the deal would be an example of overregulation and would damage the competitiveness of Google's Android handset.  Others are critical of the government's quick approvals of past Google acquisitions, like the 2007 DoubleClick purchase.  Martin Sorrell, chief executive of WPP, one of the world’s largest advertising groups suggests that the review "should be rigorous".

The final decision could come as soon as Friday.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

By MadMan007 on 5/12/2010 1:05:10 PM , Rating: 3
So let me get this, two consolidations make a competitive market? I know it's more complicated than that but still that seems to be the angle that's implied.

RE: hmm
By zephyrxero on 5/12/2010 4:41:17 PM , Rating: 3
The only problem they should be looking at is whether or not Apple will force app developers to use iAds on iPad/iPhone, and/or Google only allowing itself on Android devices. As long as neither one of those is the case, it really shouldn't matter as far as competition/monopoly laws go.

The Google aprehension continues
By atlmann10 on 5/12/2010 1:11:24 PM , Rating: 3
Don't get me wrong the first PC in my house was an Apple IIE. They make or implement very valid ideas, but seem to loose themselves in self aggrandizement every time. We will see where this goes, but I am betting that in a couple of years Apple will be in much the same place as they were in the first PC war between them and IBM. Apple wanted to stay in there (We know best what you need) system building approach (which they still use to this day one everything including smart phones and tablets), where IBM said no lets make all the PC's and software work together. If you did not pay attention, or notice Apple lost that war, and eventually Mr. Jobs lost his job at his own company.

By sprockkets on 5/12/2010 9:27:46 PM , Rating: 2
where IBM said no lets make all the PC's and software work together. If you did not pay attention, or notice Apple lost that war, and eventually Mr. Jobs lost his job at his own company.

IBM NEVER wanted interoperability. You need to research how Compaq reverse engineered the BIOS without IBM's consent, opening up the PC to cheap clones thus turning the PC into a commodity, and how IBM tried in vain to tie their proprietary expansion slot back into the platform to control it. You may think the PS/2 was only a mouse and keyboard plug, but it was much more than that.

By Iaiken on 5/12/2010 1:35:12 PM , Rating: 2
How is Omnicorp ever going to exist if the FTC keeps making stupid rulings like this?

Omnicorp. We make everything, run everything and everyone works for us. Omnicorp knows best.</sarcasm>

Though, the thought that unregulated capitalism results in quasi-communism makes me giggle.

By muhahaaha on 5/12/10, Rating: -1
RE: oye
By amanojaku on 5/12/2010 12:22:57 PM , Rating: 1
"I First Post" or "i Force Pissed"

I don't know which interpretation is correct, but this is either the dumbest or most clever post I've seen in a while. I'm going with clever.

RE: oye
By bissimo on 5/12/2010 12:36:45 PM , Rating: 2
I wouldn't be so optimistic.

RE: oye
By muhahaaha on 5/12/10, Rating: -1
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki