The NYT reports in the “Google Deal Said to Bring U.S. Scrutiny†report that the FTC “has opened a preliminary antitrust investigation into Google’s planned $3.1 billion purchase of the online advertising company DoubleClickâ€.
The investigation came to being after many worried about their privacy raised worries, this was also boosted by rival Microsoft Corp.. who was also one of Google's rival bidders during the battle for DoubleClick. 'In the complaint, the groups noted that Google collects the search histories of its users, while DoubleClick tracks what Web sites people visit. The merger, according to their complaint, would “give one company access to more information about the Internet activities of consumers than any other company in the world.â€'
NY Times writes, "The deal, involving powerful forces in their respective niches of the online advertising business, prompted privacy advocates and competitors to raise concerns after it was announced last month. Those concerns and the deal’s size made a preliminary investigation all but certain, according to antitrust experts. Those concerns and the deal’s size made a preliminary investigation all but certain, according to antitrust experts. The F.T.C. has also issued Google a detailed list of questions, the industry executive said. This step, known as a "second request" for information, can suggest that a proposed acquisition raises more serious antitrust issues. But legal experts said the request is mainly a sign that the agency is closely scrutinizing the Google deal."
Privacy rights groups believe it was essential for F.T.C. to investigate the deal. Marc Rotenberg, executive director of the Electronic Privacy Information Center said, “We think it’s very important that the F.T.C. is taking a look at the Google-DoubleClick deal."
On April 16, 2007, NY Times posted "Microsoft Urges Review of Google-DoubleClick Deal". The reason for Microsoft's angst was, "Microsoft contends that the $3.1 billion deal, announced on Friday, would hurt competition in the fast-growing market for advertising on the Web and raises questions about how much personal information would be collected by Google, already a dominant player in online advertising."
Don Harrison, Google's senior corporate counsel said, “We are confident that upon further review the F.T.C. will conclude that this acquisition poses no risk to competition and should be approved.â€
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