Concerns about Google’s dominance in online advertising have prompted the United States Federal Trade Commission (FTC) to investigate its $3,1-billion takeover of internet marketing company DoubleClick.
The purchase of DoubleClick, announced last month, is intended to give Google enhanced software and stronger relationships with agencies seeking to place adverts in strategically important positions on the web.
Privacy campaigners say the tie-up poses risks to consumers by allowing Google to track the online activity of individuals more closely. Industry rivals complain that it will give Google too much muscle in the online advertising market, which was worth $17-billion last year in the US.
Google’s senior corporate counsel, Dan Harrison, said: “We are confident that on further review the FTC will conclude that this acquisition poses no risk to competition and should be approved.”
He said “numerous” analysts had determined that online advertising is a “dynamic and evolving space” and that rich competition would bring more relevant ads to consumers.
DoubleClick is a specialist in targeting online advertisements. Its ads reach about 85% of internet users.
The US Electronic Privacy Information Centre argues that adding Google’s database of search terms to DoubleClick’s expertise in discerning web users’ commercial interests will allow the combined group to amass personal data.
“The acquisition of DoubleClick will permit Google to track both a person’s internet searches and a person’s website visits,” said the centre. “This could impact the privacy interests of 233-million internet users in the US, 314-million internet users in Europe and more than 1,1-billion internet users around the world.” — Â