Google $750 million acquisition of AdMob gets FTC approval
Google Inc., owner of world's most popular web search engine, is leader in the Internet advertising. Now after the clearance of US Federal Trade Commission of its deal with San Mateo, California-based AdMob, it would be world largest mobile advertising co
GOOGLE INC., owner of world’s most popular web search engine, is leader in the Internet advertising. Now after the clearance of US Federal Trade Commission of its deal with San Mateo, California-based AdMob, it would be world largest mobile advertising company.
The UD FTC unanimously approved Google’s $750 million acquisition of AdMob Inc, rejecting claims the purchase would reduce competition in the fledgling, market for advertising in mobile devices.
The said its decision was influenced by Apple Inc.’s recent example in mobile category, indicating there may be more competition than originally thought. FTC’s concerns were allayed by the introduction of iAd, a program that generates revenue from ads placed on Apple’s devices.
Google and AdMob combined had 21% of the US market share in 2009, and as per estimates this market is doubling in size annually.
FTC delayed its decision to examine the impact of iAd on market, “As a result of Apple’s entry into the market, AdMob’s success to date on the iPhone platform is unlikely to be an accurate predictor of AdMob’s competitive significance,” the FTC said in statement.
FTC’s 5-0 decision is clear indication of the shift in thinking following earlier signals from the agency that it was preparing to oppose Google acquisition of AdMob. Antitrust scrutiny o Google began building before the company announced the AdMob purchase in November.
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