The
Federal
Trade Commission (FTC) has started an official investigation into
Google's
planned
$3.1bn purchase of
DoubleClick.
The planned merger has prompted a flurry of similar deals in the online
advertising market, and
Microsoft
has
called
for a formal investigation on the ground of competition.
Privacy groups have also been up in arms, and the
Electronic
Privacy Information Center (Epic) filed an official complaint to the FTC
over the issue last month.
Don Harrison, a senior corporate counsel for Google, told
The
New York Times: "We are confident that, on further review, the FTC will
conclude that this acquisition poses no risk to competition and should be
approved."
The
US
Department of Justice and the FTC share responsibility for antitrust issues
in the US, while the FTC traditionally handles privacy concerns.
"We think it is very important that the FTC is taking a look at the
Google-DoubleClick deal," said Marc Rotenberg, executive director at Epic.
The group's filing cited an FTC investigation into DoubleClick in 2001 which
found that the company had sold on user information to third parties in
violation of its privacy policy.
Google's habit of recording the IP addresses of search requests was also
condemned.
The Epic filing states: "Google's and DoubleClick's conduct ... has injured
consumers throughout the US by invading their privacy; storing information
obtained through the retention of users' search terms in ways and for purposes
other than those consented to or relied upon by such consumers; causing them to
believe, falsely, that their online activities would remain anonymous; and
undermining their ability to avail themselves of the privacy protections
promised by online companies.
"Absent injunctive relief by the FTC [means that] Google is likely to
continue to injure consumers and harm the public interest."
However, privacy is not the primary concern of any antitrust investigation
which must always investigate primarily on commercial grounds.
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