FTC Looking Deeper at Google/DoubleClick
With a purchase price of more than $3b a little regulatory scrutiny was to be expected for the pending DoubleClick and Google deal. Yesterday the New York Times confirmed such scrutiny was ongoing, and official. According to the article, the Federal Trade Commission (instead of the Justice Department) was conducting a review and had issued Google a Second Request which is a formal request for answers to a list of detailed questions.
The news or review, regardless of which agency administered it, was expected. Google stated back in April when the deal was announced that they’d studied the anti-trust issues, expected regulatory scrutiny, and weren’t concerned.
Given the stakes for the acquisition are high, and also the fact that, in this transaction, you have two companies coming together that each handle a tremendous volume of consumer behavior related information, a Second Request and a detailed review is not a shocker.
DoubleClick, which provides display advertising (video or graphic banners), displays its advertising across a wide range of independent web properties and through “cookies” has the capacity to track which sites a web surfer has visited. Google, in contrast, as the leading search engine, has the capacity to track what web searchers users have made. Google reportedly keeps that date for up to several years as well. A combined company could pool this information and theoretically that could be problematic, so it warrants a check-up.
Realistically, however much privacy concerns irk and scare consumer watch groups, privacy concerns are not likely to do more than stimulate debate. Both sites have clear privacy policies and neither is doing anything outside industry practice. Click to Read More