Two U.S. consumer groups said Tuesday that the U.S. Federal Trade Commission should block Google Inc. (NASDAQ: GOOG) from its planned acquisition of AdMob Inc., according to Bloomberg.
The acquisition would give Google close to a monopoly in mobile advertising. The groups said that they have sent a letter to the FTC, urging their concern about the deal.
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Google, the world’s most popular Internet search engine, agreed last month to pay $750 million in stock for AdMob. The company aims to boost its sales of ads that appear in applications on mobile phones such as the iPhone by Apple (NASDAQ: AAPL).
The combination of Google and AdMob will form the largest mobile-advertising company, with 30 percent to 40 percent of the market, according to Karsten Weide, an analyst with researcher IDC in San Mateo, California.
Last week, Google said it received a second request for information from the FTC on the AdMob acquisition. Google expects the FTC to conclude that the mobile-advertising market will remain highly competitive after the deal closes.
There are more than a dozen mobile-ad networks and the AdMob purchase is similar to acquisitions by Microsoft Corp. (NASDAQ: MSFT), Yahoo! Inc. (NASDAQ: YHOO) and AOL Inc. in the past two years, he said. None of the companies break out mobile-advertising revenue, making it hard to estimate Google and AdMob’s market share.
Google has remained under federal scrutiny due to several similar deals in the past. The search engine was the center of an eight-month investigation by the FTC over its plan to buy DoubleClick Inc. in 2007. Last year, Google stepped away from a search deal with Yahoo after the U.S. Justice Department indicated that it would seek to block the agreement.
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