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Google Experiences EU Antitrust Friction Over Doubleclick

Posted by Zonk on Sun Sep 23, 2007 06:31 AM
from the it's-tough-trying-to-take-over-the-world dept.
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.'"

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[+] Google buys DoubleClick for $3.1 Billion 351 comments
marvinalone writes "The New York Times reports that Google has purchased DoubleClick. That seems to be the conclusion to the speculation we've talked about earlier. From the article: 'Google reached an agreement today to acquire DoubleClick, the online advertising company, from two private equity firms for $3.1 billion in cash, the companies announced, an amount that was almost double the $1.65 billion in stock that Google paid for YouTube late last year.'"
[+] Google's Stomach Pangs - Adjusting to DoubleClick 98 comments
An anonymous reader writes "C|Net is reporting on some trouble Google is having integrating DoubleClick into their family of products. External problems, like antitrust allegations and privacy concerns, are bad enough. The worst problems might come from within, though, as a division within DoubleClick was essentially created to game the very systems the Google search engine is founded on. '"Google is treading in dangerous waters right now," writes Ross Dunn of WebProNews.com. Google's search results "are supposed to be unbiased and highly relevant," but with Performics, "Google is put into the conflicted position of trying to generate profits by providing result-oriented organic ranking services for its own unbiased organic search results." The worry, in other words, is that Google's search results could be compromised by operating a division with an interest in skewing those results in favor of clients.' The article goes on to say how this Performics division is likely to be sold off to make sure everything stays above board."
[+] Politics: FTC Investigating Google-DoubleClick Deal 81 comments
An anonymous reader writes "The New York Times is covering FTC interest in Google's purchase of the DoubleClick service. The investigation is in response to privacy group concerns over the amount of information Google will have available to it via its ad service and DoubleClick. Between a few days and a week from now the FTC should either declare the all clear, or elevate the process to a 'second request' stage. That would indicate more serious issues the federal body has an interest in. Google stated it was confident the purchase would hold up under scrutiny. 'In the complaint, the groups noted that Google collects the search histories of its users, while DoubleClick tracks what Web sites people visit. The merger, according to their complaint, would give one company access to more information about the Internet activities of consumers than any other company in the world.'"
[+] FTC Approves Google-DoubleClick Deal 56 comments
Bogie Lowenstein is one of many readers letting us know that the FTC has approved Google's acquisition of DoubleClick in a 4-to-1 vote. The FTC essentially blew off the privacy concerns about the merger, saying it lacked the legal authority to block the deal on any grounds except antitrust. The EU's review of the deal is still going forward, with a decision due by April 2, 2008; the privacy sensibility there is more sharply focused.
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Google Experiences EU Antitrust Friction Over Doubleclick 25 Comments More | Login /

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  • by LingNoi (1066278) on Sunday September 23 2007, @06:42AM (#20717985)
    I could set-up my own ad sense / double click service right now at cheaper rates then Google offers and there is nothing they could do to stop me.
    • by onion2k (203094) on Sunday September 23 2007, @07:12AM (#20718087) Homepage
      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.
      • 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.
        In this case you need to distinguish between "consumers" (i.e. you or me) and "customers" (i.e. people wishing to advertise online). And the question (that the EU will be asking) is whether people (in the EU) wanting to advertise or host advertising onlin
    • I could set up my own OS right now and sell it cheaper then Google offers and there is nothing they could do to stop me. Now of course an OS is slightly harder to build then an ad sense service, however the existence of Linux and Apple hasn't stopped the E
  • misleading headline (Score:5, Interesting)

    by User 956 (568564) on Sunday September 23 2007, @06:53AM (#20718025) Homepage
    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

    It's not friction unless the EU doesn't approve the deal on October 26. Until then, this is normal process. I would question who this "anonymous reader" who submitted the misleading headline is.
    • Re:EU is right (Score:4, Insightful)

      by someone1234 (830754) on Sunday September 23 2007, @07:27AM (#20718151)
      This doesn't mean Google is anticompetitive, more like the competition is incompetent.
      It isn't Google who closed EU for Yahoo, and it isn't Google who set M$'s business plan.
        • That is not a monopoly. There is nothing stopping anybody from creating a brand new business generating ads like Doubleclick. Only governments and thugs get in the way of new business/innovation from occurring (yes I'm referring to the EU Commision).
    • What is getting out of hand?
      The EU has never stated they have a problem with this purchase, they are only investigating as is their duty to keep business in it's jurisdiction fair.
      Monopolies and similar have always hurt people.
      In this particular case (t
    • Hm, don't you think this EU anti-trust venture is getting a tad out of hand now?


      No.
    • Re: (Score:2, Funny)

      I was going to argue with you, but I clicked your website (to see what country you're in). I don't want to argue any more; you're hot, wear black and have similar musical taste to me.

      (Well, anyway: the EU is helping startups here, by allowing fairer compe
      • Re: (Score:3, Insightful)

        I've a question: who'll protect us from the monopoly of the EU? Did anyone ask YOU if you want them protecting your rights in THIS particular fashion?
        The EU anti-competitive laws are set up to regulate the EU common market. The common market was set up a
      • by Teun (17872) on Sunday September 23 2007, @08:02AM (#20718293) Homepage

        The bias though which the community spins EU's actions is hilarious, but I see this is consistent to what they did with Microsoft, charging them nearly a billion because they shipped a video player in their OS.
        Look who spins!
        Microsoft is still being investigated because they continue to spoil the playing field for others.
        In Europe, just like the USofA, a company in a near-monopoly situation has greater obligations than a start up, Microsoft continues to challenge that notion.
        Of course the EU commission could have picked better examples, like opening the specs to allow access to NTFS and supporting Samba.

        I've a question: who'll protect us from the monopoly of the EU? Did anyone ask YOU if you want them protecting your rights in THIS particular fashion?
        I feel very happy we have an active EU commission.
        The problem is they see these things as a legal challenge while I would like more technical issues like interoperability being discussed.

        Did someone ask you when EU slapped VAT and sales tax on online purchases? Do I have a choice, short of moving to a different continent.
        I would find it weird, even unacceptable, when internet companies would have a tax advantage over a regular one.
        So charging the local/national VAT at the place of destination sounds, as far as any sales tax goes, really fair for all.
      • Re: (Score:3, Insightful)

        I've a question: who'll protect us from the monopoly of the EU? Did anyone ask YOU if you want them protecting your rights in THIS particular fashion? Did someone ask you when EU slapped VAT and sales tax on online purchases? Do I have a choice, short of m
    • If only there were some way to look up past decisions, such as a web page which might return a list of results, when presented with a query.

      Yes - the EU fines lots of companies regardless of where they're based. Just because the DOJ has no bollocks, doesn'

    • Re: (Score:3, Interesting)

      I wonder if the EU would be so vigilant if Google was started and owned by a pair of Europeans?
      Actually, yes. Most antitrust action in the EU has been concerning European companies, not outside ones. And if anything, the commission tends to be harsher towards those than others (since it violates the idea of free trade within the EU).
    • 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.
    • Re: (Score:3, Informative)

      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 S
      • Also keep in mind that Google has a European HQ in Dublin. In a limited but real sense, within Europe Google *is* a European company. Of course they'll be subject to EU regulations and laws.