Just 2 weeks after informing that, "EU Extends Google-DoubleClick Enquiry Deadline!", The Herald Tribune informs that 'Google fails to win EU approval for DoubleClick deal' as authorities at the European Commission denied to okay Google's $3.1 billion purchase of DoubleClick, the Internet advertising company. Also the EU Commission ordered an in-depth review amid opposition from rivals, publishers and consumer groups.
The inquiry is one of very few major business challenges that Google, the world's dominant Internet search engine and a star stock-market performer, has encountered in its nine-year history. The company makes money by selling space next to search results to advertisers, while DoubleClick, a privately held company, places banner ads on Web sites and sells analysis of who gets exposure to them.
In this regard, Google CEO, Eric Schmidt said, "We are obviously disappointed. We seek to avoid further delays that might put us at a disadvantage in competing fully against Microsoft, Yahoo, AOL and others whose acquisitions in the highly competitive online advertising market have already been approved."
"Google already had given the commission what some people termed "concessions." As the first deadline for the European decision approached late last month, Google made some assurances about the future relationship of the two businesses, promising to "keep certain DoubleClick business practices unchanged," according to a statement by Julia Holtz, competition counsel for Google."
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