Washington
– The Federal Trade Commission (FTC) on Friday approved Google’s (NASD: GOOG) proposed $750
million acquisition of mobile advertising firm AdMob, saying that after its
review it does not believe the deal will harm competition. "Although the
combination of the two leading mobile advertising networks raised serious
antitrust issues, the agency’s concerns ultimately were overshadowed by recent
developments in the market, most notably a move by Apple Computer Inc. — the
maker of the iPhone — to launch its own, competing mobile ad network,"
the FTC said in a statement.
The agency also cited moves by firms looking to
develop or acquire smartphone platforms, who "would have a strong
incentive to facilitate competition among mobile advertising networks."
Apple (NASD: AAPL)
recently announced plans for its iAd mobile advertising platform for the
iPhone, after acquiring mobile advertising firm Quattro Wireless in January.
"As
a result of Apple’s entry (into the market), AdMob’s success to date on the
iPhone platform is unlikely to be an accurate predictor of AdMob’s competitive
significance going forward, whether AdMob is owned by Google or not," the
agency concluded.
Related Links:
http://ftc.gov/opa/2010/05/ggladmob.shtm
http://snipurl.com/wm6it
(AdMob blog)
