F.T.C. Clears Google-DoubleClick Deal
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The go-ahead from the Federal Trade Commission clears the way for a formidable combination in the burgeoning online advertising sector.
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Google filed with the European Union  competition regulator on Friday for permission to buy rival  DoubleClick for $3.1 billion, the European Commission said.
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(InfoWorld) - A European consumer group has complained that Google's proposed acquisition of online ad broker DoubleClick could hurt privacy rights due to the massive amount of data the companies would hold. In a letter, the Bureau EuropÃ©en des Unions de Consommateurs (BEUC) has asked the European Commission and other authorities to investigate how the deal would affect consumers. Google, whichÂ bought DoubleClickÂ in April for $3.1 billion, refuted the assertion that the deal will harm privacy. "Not surprisingly, we don't agree," said Rachel Whetstone, Google's director of European corporate communications, on Thursday. The company thinks the deal will lead to lower priced ad services for both publishers and advertisers, and the delivery of more relevant ads to users, she said. Google's deal with DoubleClick also prompted scrutiny. The U.S. TheÂ Federal Trade Commission is investigatingÂ the deal following a complaint filed by the Electronic Privacy Information Center, the Center for Digital Democracy, and the U.S. Public Interest Research Group. The groups are concerned how Google will protect its data and users' privacy, including how it will handle cookies and other data that could potentially be used to identify Internet users. The European Commission has not yet been formally notified of the deal by Google or DoubleClick, a Commission spokeswoman said. Acquisitions can fall under the purview of national competition authorities or the European Commission, depending on where the companies do business, their turnover and other factors, the spokeswoman said. Â
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Google took a step closer to its acquisition of online advertising server DoubleClick on Thursday, when the U.S. Federal Trade Commission (FTC) approved the sale. One major hurdle still remaining is approval by the European Commission.
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Nearly lost in the news about the&#160;U.S. Federal Trade Commission&#39;s (FTC) approval on Thursday of Google&#39;s acquisition of DoubleClick&#160;was another action by the agency: The publication of a proposed set of privacy principles governing online behavioral advertising.The release of the privacy principles is an important and welcome step, said Peter Swire, a senior fellow at the Center for American Progress, a liberal think tank, and a law professor at Ohio State University. Although some privacy groups blasted the FTC for approving Google&#39;s DoubleClick deal, the acquisition has helped place focus on the entire online advertising industry&#39;s privacy practices, Swire said.&quot;It&#39;s good that the FTC is shining a spotlight on this industry,&quot; Swire said Friday. &quot;Online advertising is in its second boom. They&#39;re trying lots of new techniques; some of those techniques have privacy problems.&quot;The FTC hosted a workshop on behavioral advertising and privacy in November. The agency&#39;s proposed privacy principles, a series of &quot;self-regulatory&quot; steps the FTC is recommending for online advertisers, come in part from that workshop.Among the FTC&#39;s proposals:-- Web sites that collect information for behavioral advertising should provide a &quot;clear, consumer-friendly, and prominent statement&quot; about the reason for collecting that data. Consumers should be able to choose whether they will allow that information to be collected.-- Any company that collects or stores consumer data for behavioral advertising should provide &quot;reasonable security&quot; and should keep data only as long as necessary to fulfill legitimate business or law enforcement needs.-- Companies should only collect sensitive data for behavioral advertising if they obtain express consent from the consumer.The Center for Democracy and Technology (CDT), a group focused on online privacy and civil liberties, also praised the FTC for releasing its privacy principles. The principles are a &quot;clear sign that the commission does not believe that the industry&#39;s current self-regulation framework is sufficient to protect consumers today,&#8221; CDT Deputy Director Ari Schwartz said in a statement.CDT also called on Google to &quot;step up and make a clear, public statement about its plans for proactively protecting consumer privacy.&quot; Consumer privacy in the behavioral advertising market remains an industrywide concern that requires the focus of consumers, policymakers and companies, CDT said.The release of the privacy principles should send a signal to online advertisers, said Leslie Harris, CDT&#39;s president. &quot;In releasing these principles, the FTC hasn&#39;t closed the door to other options,&quot; she said in a statement. &quot;Self-regulation is part of the solution for protecting consumer privacy, but clearly self-regulation hasn&#39;t lived up to its promises.... We&#39;ll need a rigorous mix of self-regulation backed by regulatory enforcement.&quot;Other privacy groups criticized the FTC for its ruling allowing Google&#39;s acquisition of DoubleClick to move forward. The agency had reason to act on privacy concerns raised by the merger and failed, said Marc Rotenberg, executive director of the Electronic Privacy Information Center (EPIC), one of three privacy groups that asked the FTC to block the merger or impose privacy conditions.The FTC could have established &quot;the necessary safeguards for personal data and competition that could have allowed a global [privacy] framework to emerge,&quot; Rotenberg said. &quot;[The FTC&#39;s] sole purpose is to protect the public interest. It failed to do so ... in a case that will have far-reaching implications for the Internet economy and the privacy rights of American consumers.&quot;Joseph Turow, a communication professor at the University of Pennsylvania, agreed. The European Union is still investigating the Google-DoubleClick deal, with a decision not due until April, and it is likely that regulators there will take a harder look at privacy issues, he said.Consumer tracking and privacy should be part of the FTC&#39;s antitrust review when it looks at online advertising deals, he said. &quot;You can&#39;t talk about the digital advertising market today without talking about competition in targeting Americans,&quot; he said.Google supports the FTC&#39;s efforts to create privacy guidelines, David Drummond, the company&#39;s senior vice president for corporate development and chief legal officer, said in a blog post. &quot;The FTC&#39;s decision publicly affirms what we and numerous independent analysts have been saying for months: Our acquisition does not threaten competition in what is a robust, innovative, and quickly evolving online advertising space,&quot; Drummond wrote. &quot;In fact, we firmly believe the transaction will increase competition and bring substantial benefits to consumers, web publishers, and online advertisers.&quot;Critics failed to show specific privacy harms, added Thomas Lenard, president of iGrowthGlobal, a conservative think tank. &quot;I don&#39;t see a problem because nobody has demonstrated the acquisition will result in any privacy harm to consumers,&quot; he said. &quot;All the allegations are very hypothetical. Privacy advocates assert that Google&#39;s and DoubleClick&#39;s activities injure consumers, but they don&#39;t provide any evidence.&quot;If the FTC had blocked the deal, it would be &quot;penalizing success, and that would send a bad signal to the marketplace,&quot; Lenard added. &quot;That would also be bad for consumers.&quot;
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The Web site of a law firm employing the husband of U.S. Federal Trade Commission chairwoman Deborah Platt Majoras contradicts an FTC explanation that Majoras has no conflict of interest in reviewing DoubleClick&#39;s $3.1 billion acquisition by Google, two privacy groups said Thursday.On Wednesday, the Electronic Privacy Information Center (EPIC) and the Center for Digital Democracy (CDD)&#160;asked Majoras to recuse herself from the merger review, saying her husband, John Majoras, is a partner with Jones Day, the law firm that is advising DoubleClick on antitrust issues relating to the acquisition.DoubleClick and the FTC have denied that Jones Day has represented the company before the FTC.But on Thursday, EPIC and CDD filed a second complaint with the FTC, showing a cached Web page claiming that Jones Day is advising DoubleClick &quot;on the international and U.S. antitrust and competition law aspects of its planned $3.1 billion acquisition by Google Inc.&quot; The Jones Day Web page was later changed, the groups said.EPIC and CDD said Thursday they were filing a Freedom of Information Act request seeking all records on the relationship between Jones Day and DoubleClick.One conclusion to draw is that &quot;Jones Day has sought to conceal the nature, scope, and duration of the relationship with its client DoubleClick by altering web pages,&quot; said a letter signed by executive directors of both organizations. FTC spokespeople who denied the relationship were &quot;either misinformed or willfully misled the public,&quot; the letter says.An FTC spokeswoman declined to comment on the new complaint. Representatives of Jones Day and DoubleClick weren&#39;t immediately available for comment.The FTC and DoubleClick downplayed the connection Wednesday, saying Jones Day has not advised DoubleClick on matters before the FTC. Instead, Simpson Thacher &amp; Bartlett has been DoubleClick&#39;s outside counsel since July of 2005 and has advised it in matters before the FTC, DoubleClick said in a statement.&quot;Jones Day was not engaged to represent, and has not represented DoubleClick before the Federal Trade Commission or appeared before the commission on DoubleClick&#8217;s behalf,&quot; the company said.In April, EPIC, CDD, and the U.S. Public Interest Research Group (US PIRG)&#160;asked the FTC to block Google&#39;s acquisition of DoubleClick&#160;unless the combined company made changes to its privacy practices. The combined company would hold a vast amount of private information on Web users, the groups said.
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Blog: The Federal Trade Commission plans to expand its probe beyond Google-DoubleClick to also look at Microsoft and Yahoo deals, the Wall Street Journal reported Thursday
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Internet search leader Google Inc.   is open to new acquisitions and remains hopeful it can  close the $3.1 billion purchase of Web ad supplier DoubleClick  by end-2007 despite a U.S. federal probe, its CEO said on  Wednesday.
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BRUSSELS - Google Inc. is confident that its $3.1 billion bid for online ad tracker DoubleClick will win over European and US regulators, a company executive said yesterday - even as advertisers expressed concerns the deal will shrink competition.
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Googleâs proposed purchase of the online advertising firm DoubleClick received no outright opposition at a Senate hearing Thursday.
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Google Inc. is confident that its $3.1 billion bid for online ad tracker DoubleClick will win over European and U.S. regulators, a company executive said Friday Â even as advertisers expressed concerns the deal will shrink competition.
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EBay says it is ending its ad pullout from Google's U.S. AdWords network.
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The Federal Trade Commission said on  Thursday it approved Google's  proposed $3.1 billion  purchase of advertising rival DoubleClick.
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Pledges 'constructive' dialogue with Europe Google is reported to be facing a fresh regulatory investigation: this time in the US, and into its acquisition of ad serving firm DoubleClick.â¦
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WASHINGTON -- The chairman of a Senate antitrust panel said Thursday that Google Inc.'s proposed $3.1 billion acquisition of online advertising firm DoubleClick Inc. "warrants close examination" by federal regulators.
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The move comes as DoubleClick faces increasing competition from search engine advertisement on such sites as Google and Yahoo. Analysts speculated that any sale would likely be worth between
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(InfoWorld) - Google's proposed merger with online advertising server DoubleClick would create a giant that would control a huge portion of online advertising and hurt the Internet, opponents of the deal told U.S. lawmakers Thursday. The merger, proposed in April, would create "extreme market concentration," said Scott Cleland, chairman of Netcompetition.org, an advocacy group representing large broadband providers. The merger would leave online advertisers with "no real competitive choice," he told the Senate Judiciary Committee's Subcommittee on Antitrust, Competition Policy and Consumer Rights. Microsoft general counsel Brad Smith argued that the marriage of Google and DoubleClick will allow Google to control 70 percent of the search-based advertising market and 80 percent of the online display advertising market. Smith, whose company is still under court supervision for its ownÂ 2002 antitrust settlement with the U.S. government, suggested regulators should reject the Google-DoubleClick merge on antitrust grounds. "What are the economic consequences of allowing the largest company in online advertising to acquire its most significant competitor?" Smith said. "If Google and DoubleClick are allowed to merge, Google will become the overwhelmingly dominant pipeline for all forms of online advertising." But David Drummond, Google's chief legal officer, argued that DoubleClick has a different business model than Google. "We are confident that our purchase of DoubleClick does not raise antitrust issues because of one simple fact: Google and DoubleClick do not compete with each other," he said. "DoubleClick does not buy ads, sell ads, or buy or sell advertising space. We sell ads, DoubleClick delivers ads." Microsoft's estimates of Google and DoubleClick controlling 80 percent of the display ad market is a "made-up number," Drummond added. A little more than a month afterÂ Google announced plans to acquire DoubleClick for $3.1 billion, Microsoft announced that it would saidÂ acquire aQuantive, a digital marketing services agency, for $6 billion.Â YahooÂ andÂ AOLÂ have recently announced their own acquisitions in the online advertising space. Cleland argued that the Google-DoubleClick deal represents the biggest threat to competition in online advertising. He called the U.S. government's antitrust review "a watershed moment for Internet competition." Google's own "uniquely monopolistic" mission statement says it wants to "organize the world's information," Cleland added. "No other entity currently has such a naked ambition to control or effectively corner the market for any of the world's commodities, let alone all the world's information," he said. In addition to the antitrust issues raised at the hearing, Marc Rotenberg, president of the Electronic Privacy Information Center, voiced concerns that the merger will have a huge effect on consumer privacy. The combined company would control a huge database of customer data, Rotenberg said. Regulators in the United States, Canada, Australia, and Europe "appear to be in agreement that there is no merger that poses a more significant threat to online privacy than Google's proposed acquisition of DoubleClick," Rotenberg said. "This is going to be a real problem for the Internet if it's allowed to go forward." Google believes "deeply in protecting online users' privacy," Drummond answered. Google has announced plans to make IP addresses and cookies anonymous, and the company is working on several other privacy initiatives, he said. Senator Orrin Hatch, a Utah Republican, asked Google's Drummond how the company can complain about the lack of broadband providers when its merger could create a dominant Internet advertising provider. Companies wishing to advertise online have "many, many choices," Drummond said, while most consumers have the choice of one or two broadband providers. But Hatch also suggested to Microsoft's Smith that Google could lose advertising market share if a better search engine comes along. "Where is the antitrust problem?" he said. "Why not just build a better product?" The online advertising market is consolidating rapidly, Smith said. Companies wishing to advertise online will soon be left with one to three choices, he predicted.