Following Google's announcement Friday that it had acquired Internet ad serving giant DoubleClick for $3.1 billion, companies such as Microsoft and AT&T quickly began to voice their concerns about the potential antitrust concerns, urging regulators to examine and possibly prevent the merger.
In an interview from Web 2.0 Expo, recapped on Wired News this week, Google's CEO Eric Schmidt expressed tongue-somewhat-in-cheek surprise to hear that both Microsoft and AT&T were making antitrust accusations, since both companies have faced their share of similar accusations.
Both Microsoft and AT&T have made their position regarding the antitrust concerns clear in the last few days:
Microsoft's contends that the combined resources of Google and DoubleClick (the two largest distributors of advertising online) would create a set of advertising resources large enough to reduce competition in the business. What's more, Google's gathering of information regarding the preferences of users of its network and DoubleClick's use of cookies to monitor user behavior would enable the company to "observe and capture consumer information on an unprecedented scale" (according to the New York Times report).
Not true, says Google.
AT&T's antitrust warning went a little differently. The telco says its own interest in distributing services like digitally delivered IPTV television content could be affected. Because those services are largely ad-supported, Google is in a position to "pick the winners" in that business.
Not true, again, says Google. And granted, Google's answer at this stage doesn't really have to amount to much more than "there is not an antitrust concern." I think we can safely assume that Google gave the antitrust possibilities at least a cursory glance while it was writing out the $3.1 billion check.
Google has said that its service, and DoubleClick's, are part of a very large Internet advertising business in which they face plenty of competition, and that moving from their products to those of competitors is not difficult.
Of course, there's a certain implicit understanding that the antitrust stance is "plan b" for Microsoft, a company that operates a competing pay-per-click ad network and was, as recently as two weeks ago, in talks to acquire DoubleClick (plan a).
It is not yet known if either of the Justice Department or the Federal Trade Commission, which share responsibility for regulating antitrust concerns, will investigate the deal. The question would revolve around how difficult it would be for new entrants to compete in the market.
Since it is inconceivable that the FTC and Justice Department are unaware of the multi-billion dollar merger announced several days ago, the question of whether an investigation actually takes place may offer some insight to just how valid the antitrust claims are.
TAGS: 
google, 
doubleclick, 
antitrust
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