FTC Ramps Up Investigation on Google's AdMob Buy

Posted 12/23/2009 at 2:47pm | by Bart Salisbury

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Google, which already has a pretty substantial presence in advertising on the Internet, is seeking to extend its reach with the acquisition of AdMob, a mobile advertising start-up. A sign that the purchase may be raising antitrust concerns: the Federal Trade Commission (FTC), which must first bestow its blessing on the purchase, is asking for additional information from Google.

Google’s Public Policy Blog reports: “This week we received what's called a "second request," which means that the FTC is asking for more information so that they can continue to review the deal.” Google’s not necessarily surprised by the request, because it knows “that closer scrutiny has been one consequence of Google's success.”

Google is still positive that the FTC will allow the planned purchase to be completed. Antitrust expert and Harvard law professor Andrew I. Gavil isn’t so sure. He believes the second request is not good news for Google. He points out that with a new set of FTC commissioners and a new administration, acquisitions such as this will get a more careful vetting.

Google's deal for AdMob isn't yet dead, but it is a bit further away from living than it was yesterday.

Image Credit: Federal Trade Commission