Consumer Groups Lobby FTC to Block GoogleMob
Early last month, Google announced it was acquiring AdMob for $750M. The deal is still in the works, of course—in part, at least, because the FTC is taking a first and, as of last week, second look at the deal. As the FTC continues to scrutinize the search giant buying the mobile ad giant, consumer groups are taking their opportunity to have their say—and it’s not in favor of the deal.
The biggest concerns of the Center for Digital Democracy and Consumer Watchdog include decreasing competition in the mobile ad market and consumer privacy. The groups say that together, Google and AdMob would control most of the mobile ad market. AdMob is already the leader in the market, thought there’s lots of competition in that area. However, with backing from the search engine, it’s possible that AdMob could come to dominate their arena just as Google pwns theirs.
The second argument is based on the fact that Google and AdMob both collect considerable information about their users. Together, that information may be a threat to consumers’ privacy, with the two entities sharing everything from searching habits to location data. The groups’ full filing with the FTC is embedded below.
It’s easy to understand the appeal for Google, though—with AdMob “approaching a $100M business in the next three years,” as TC puts it, this could be the way for Google to stake their claim in the emerging mobile market.
CW and the CDD often make this type of filing on Google’s acquisitions, and it doesn’t always seem to have an effect. But with the FTC already taking a harder look, their word may have that much more sway with the regulators this time around.
What do you think? How much influence will CW & the CDD have this time? Will the FTC ultimately okay the deal?