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Google Experiences EU Antitrust Friction Over Doubleclick
An anonymous reader writes "Here in the US, the Google purchase of Doubleclick is old news. Despite a few hiccups, the news of April and May seems well in the past. In the European Union, though, the discussion begins anew again as Google seeks permission from EU antitrust regulators. From the article: 'The European Commission said it had set a review deadline of October 26, when it could approve the deal, give a two-week extension or open an in-depth, four-month investigation ... The Commission has already sent questionnaires asking competitors and customers what they think about the deal. Google has already filed with the U.S. Federal Trade Commission and with the Australian competition regulator.'"
Noone is saying it's anti-competitive. They're saying it might be anti-competitive. There's less choice for the consumer. Prior to Google buying DoubleClick someone wanting to purchase adverts had a few choices between 3 similarly sized networks (Google, DoubleClick and Yahoo) plus a handful of smaller players. Since the merger there's one behemoth and noone even close to the same sort of size, and consequently noone in a position to offer the same sort of service. If Google wanted to they could reduce their prices too (economies of scale coming into effect). They have effectively bought themselves into the position of a monopoly. All the EU are doing is checking if that's really the case or if the market is still open for consumers to shop around.
http://twitter.com/onion2k
That would explain why the EU only ever investigates foreign companies...
Oh wait, what's that? they investigate Foreign and EU companies.. Oh
The US investigates US and foreign companies for this kind of behaviour too?
Oh and the commission is to ensure that *customers* don't get a poor deal? its not about promoting one company over another?
My god, how can we live with this horrible intrusion into the free market, which only effects all companies?
Wait a minute - how come you didn't complain when VW or SAS or Maersk Air, or Hoechst AG, or Peaugot were fined? See what a 2 minute web search can do? That's from a single page, all in one year, take a look at the EU website and see how many fines have been issued against EU and foreign companies. Whilst you are at it, take a look at how many companies have been investigated, because at the end of the day, all that is happening is that a deal that Google has put together that clearly *does* change the on-line advertising market, the EU wants to make sure that that change will not be detrimental to consumers. Hardly a protectionist and anti-American attack (OR should I say that it is not commercial-terrorism?). The EU *is* in part there to encourage and grow EU business, it is also there to protect its own internal market (see the tariffs and penalties imposed against foreign nations, in the same way as they are imposed on the EU), and if it didn't exist Google would be facing investigations not by one commission, but by the individual bodies of each of the current member states (I'm sure some are investigating anyway).
I'm sick and tired of US bashing in the EU and EU bashing from the US. Much of what is discussed in the media in terms of economics is nothing short of propaganda (Although I must say that the US is better at propaganda, or maybe European's are better at seeing through it), see what we have had recently with china, or the reaction in the UK to the US sub prime credit collapse.
If people could put aside their national bias for a day, we might be able to make this free-market globalisation thing work, but that is not likely, instead we will take taxpayers money and use it to prop up ailing businesses (as if they have a *right* to survive) or use it to prevent others from entering our markets. That's the US and Europe (and much of the rest of the world). Either practice capitalism, or scrap it and work out a way of organising an economy that benefits the citizens of the world rather than a few mega-corporations.
Bit of a rant, but come on, this is so far a non story, for the EU it is the sensible thing to do, it s not anti-American, it is ensuring that the consumer (thats me and you) get a good deal.
Yes, Few years ago, the EU didn't approve a merger between two big French industrial industries.
Schneider and Legrand. Schneider lost billions in this affair (If I remember well, they had to resell shares of something). But the EU court voted in favor of Schneider and the EU had to compensate a part of this loss.
http://www.arcweb.com/txtlstvw.aspx?LstID=2a4b621b-e581-471b-9f78-98c4f01409c6
There are others like France Telecom forced to resell a subsidiary in Belgium. Merger in Austria forbidden, and plenty of others cases that don't interest US citizens. You only see the top of the Iceberg.
I really do think that it is good that the EU keeps an eye on the free market. Monopolies are a natural tendency of companies. They are not good for a vibrant free market, full of competitions, innovations and fair prices. And this example shows you that the decision may be overruled too.