Although the deal has already been done, Google’s acquisition of mobile ad network AdMob has not been an easy task.
Google have come under scrutiny from the Federal Trade Commission (FTC) after two separate consumer groups, Consumer Watchdog and Center for Digital Democracy lobbied to have the acquisition overturned.
Both groups have asked the FTC to block the deal on the grounds of anti-trust and possible privacy issues. In a joint letter from the groups:
Consumers will face higher prices, less innovation and fewer choices. The FTC should conduct the appropriate investigation, block the proposed Google/AdMob deal, and also address the privacy issues.
When the deal was first announced, there was plenty of speculation on what impact the deal would have on the rest of AdMobs competitors and the mobile advertising market in general. Now, it would appear that this speculation hasn’t died down.
The groups are also concerned at the amount of data that Google now has access to as a result of the deal.
Data about competing smartphone users and applications, gathered through the Google/AdMob advertising network, could give Google information about its competitors that would be advantageous in marketing its new smartphone, as well models using its Android operating system.
Although this investigation may stall the flow of the deal, I don’t see it doing any great damage. Google have been under the spotlight all year as a result of their acquisitions and have come out the other end reasonably unscathed, so I don’t this will be any different. What do you think? Share your thoughts below.