Consumer groups ask FTC to block Google’s AdMob purchase

Shane McGlaun - Dec 29, 2009
Consumer groups ask FTC to block Google’s AdMob purchase

Online advertising is a huge business and has helped to turn Google into one of the biggest companies in the technology industry. Google is looking to expand its advertising empire and is now targeting the mobile advertising market that is in its infancy.

To gain a larger share of the mobile advertising market Google is looking to purchase AdMob for $750 million. The FTC has issued a “second request” for more information on the potential purchase. Two consumer watchdog groups — Consumer Watchdog and the Center for Digital Democracy — have asked the FTC to block the purchase claiming that Google is buying its way to dominance in the market.

The allegation by the two consumer groups is that the purchase will diminish the competition in the market hurting consumers. It’s hard to see the justification for blocking the deal considering that the purchase will only give Google 24% of the market with the second place firm having 18% of the market and several other players also holding decent shares in mobile advertising.

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