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EU to Investigate Google Doubleclick Acquisition
the linux geek writes "Google is undergoing an investigation by the European Union for its $3.1 billion acquisition of internet advertiser DoubleClick. "We seek to avoid further delays that might put us at a disadvantage in competing fully against Microsoft, Yahoo, AOL and others whose acquisitions in the highly competitive online advertising market have already been approved," said Google boss Eric Schmidt. The United States' Federal Trade Commission has been reviewing the acquisition since May."
Not much to it:
EU will investigate Google deal
European Union regulators have launched an in-depth investigation into Google's $3.1bn (£1.5bn) takeover of online advertising firm DoubleClick.
The EU Commission said its initial probe had shown the deal would raise competition concerns.
It has set itself a deadline of 2 April 2008 to reach a decision.
Google said it would work with the Commission to show how the acquisition would benefit publishers, advertisers and consumers.
"We seek to avoid further delays that might put us at a disadvantage in competing fully against Microsoft, Yahoo, AOL and others whose acquisitions in the highly competitive online advertising market have already been approved," said Google boss Eric Schmidt.
The European Commission is working closely on the case with the US Federal Trade Commission, which has been reviewing the deal since May.
Both Google and DoubleClick are involved in online advertising, although they have different roles.
DoubleClick helps link up advertising agencies, marketers and web site publishers hoping to put ads online and track them.
Google allows firms to target advertising at people using particular search terms and also stores information about users' internet surfing habits.
Sorry, even American companies need to obey EU law while doing business in the EU.
Companies that do business in a region or country are bound by the laws of that region or country.
Google is bound by US law -- but for the business it does in the EU, it is also bound by the EU. The EU can say, "If you want to do business here, you need to abide by our laws."
They can also say, "If you want to bring your monopoly here, you can pay X in fines for the privilege, or get rid of your monopoly."
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
I know alot of money is spent on online advertising, but how effective is it really?
/. I am not able to remember afterwards what the advertisements were... Does anyone really look at them?
...) are trying to dominate this corner of the advertisement market, which tells me that companies spend alot of money on online advertisement. But do they really profit from this?
When I visit a page with advertising like
Alot of the big players (Google, Microsoft,
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IANAL but I think if Google plans to do business in the EU by selling online advertisement space to European companies and the EU decides that they hold a monopoly on such advertising than they will have to pay fines, or get rid of the monopoly. As you said I don't think the EU can stop the deal, but they can convict Google.
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Sorry about that, I'll get on that as soon as I can. I'm working on the First Post and Goatse problem right now.