Google
Google's planned $3.1bn purchase of DoubleClick is under investigation by the FTC

FTC investigates Google DoubleClick deal

Proposed merger raises 'antitrust' and 'privacy' concerns

Written by Iain Thomson

The Federal Trade Commission (FTC) has started an official investigation into Google's planned $3.1bn purchase of DoubleClick.  

The planned merger has prompted a flurry of similar deals in the online advertising market, and Microsoft has called for a formal investigation on the ground of competition.  

Privacy groups have also been up in arms, and the Electronic Privacy Information Center (Epic) filed an official complaint to the FTC over the issue last month.

Don Harrison, a senior corporate counsel for Google, told The New York Times: "We are confident that, on further review, the FTC will conclude that this acquisition poses no risk to competition and should be approved."

The US Department of Justice and the FTC share responsibility for antitrust issues in the US, while the FTC traditionally handles privacy concerns.

"We think it is very important that the FTC is taking a look at the Google-DoubleClick deal," said Marc Rotenberg, executive director at Epic.

The group's filing cited an FTC investigation into DoubleClick in 2001 which found that the company had sold on user information to third parties in violation of its privacy policy.

Google's habit of recording the IP addresses of search requests was also condemned.

The Epic filing states: "Google's and DoubleClick's conduct ... has injured consumers throughout the US by invading their privacy; storing information obtained through the retention of users' search terms in ways and for purposes other than those consented to or relied upon by such consumers; causing them to believe, falsely, that their online activities would remain anonymous; and undermining their ability to avail themselves of the privacy protections promised by online companies.

"Absent injunctive relief by the FTC [means that] Google is likely to continue to injure consumers and harm the public interest."

However, privacy is not the primary concern of any antitrust investigation which must always investigate primarily on commercial grounds.

Advertisement

Enjoyed this article? Help spread the word:

Comments

White papers

Related jobs

Spotlight

Richard Mayfield, Waitrose FD

Profile: Richard Mayfield, Waitrose FD

Waitrose FD Richard Mayfield tells our reporter about the pros...

Credit crunch special: guiding business through the storm

The downturn is hurting and recession looms. Will accountants be...

Beat the credit crunch with Young Professional

Latest issue features a guide to advancement during economic uncertainty,...

Find your next job

Find your next job

Advertisement

Salary Checker

Newsletters

Sign up here for the very latest news delivered to your inbox. Choose from the following options:

Search white papers

Search white papers

Advertisement

Have your say

Would rumoured Treasury moves to abolish stamp duty do anything to help the housing market?
Yes, scrapping stamp duty has been a long time coming
No, any move is far too little, too late

Job of the week

More finance jobs...

Advertisement

Your next job