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Advocacy groups urge FTC to bar Google-AdMob deal - USA - Business - Google - Technology - AdMob

Advocacy groups urge FTC to bar Google-AdMob deal

Two advocacy groups asked U.S. antitrust regulators on Monday to block Google's (GOOG.O) purchase of AdMob, a provider of advertising services for mobile phones, on antitrust grounds and to address privacy issues raised by the deal.

Reuters | Published: 12/29/2009 06:59

Consumer Watchdog, a consumer advocacy organization, and the Center for Digital Democracy, an advocate of open access to the Internet, said in a letter to the Federal Trade Commission that the proposed deal would "substantially lessen competition in the increasingly important mobile advertising market."

The groups also said the deal created privacy concerns, which are not normally considered in antitrust analyses.

"Google amasses a gold mine of data by tracking consumers' behavior as they use its search engine and other online services. Combining this information with information collected by AdMob would give Google a massive amount of consumer data to exploit for its benefit," said the emailed letter, which was addressed to FTC Chairman Jon Leibowitz.

Google, the No. 1 online search engine, has said that the FTC requested additional information about the $750 million deal last week. In the absence of a second request, U.S. antitrust regulators normally approve deals within 30 days.

If approved, Google's purchase of privately held AdMob would be its third most expensive purchase behind the $3.1 billion acquisition of DoubleClick and the $1.65 billion purchase of YouTube.

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