FTC gearing up to challenge Google's AdMob acquisition

The Federal Trade Commission is assembling an internal litigation team as it prepares to mount an antitrust challenge to Google's proposed $750 million acquisition of mobile advertising network AdMob. Citing sources familiar with the matter, The Wall Street Journal reports the FTC has also sent letters to AdMob's competitors requesting sworn statements about the potential impact of the deal, as well as briefed Congress about its concerns over the acquisition. The Journal adds that FTC staffers have not yet made a final decision to block the AdMob acquisition, however, and its five commissioners have not voted on the issue. In the meantime, Google legal representatives continue to meet with the FTC to argue their side of the deal.

The FTC declined to comment. "While we're continuing to work with the FTC, there is overwhelming evidence that mobile advertising will remain competitive after this deal closes," a Google spokesperson told the Journal.

In addition, Sen. Herb Kohl (D., Wis.)--chairman of the Senate subcommittee on antitrust--sent a letter to the FTC on Tuesday, urging the agency to carefully scrutinize the AdMob acquisition and arguing that it "raises important competition issues." Noting analysts' lofty expectations for future mobile advertising revenues, Kohl writes "It is therefore of vital importance to be wary of any transaction that would create undue market dominance of search- or application-based advertising on mobile devices such as smartphones."

Google announced its intentions to acquire AdMob late last year, stating the deal would enhance its expertise in the growing mobile ad segment. In December, the Wall Street Journal first reported the FTC was reviewing the agreement, stating at that time the review appeared procedural, with no indication the FTC had identified potential antitrust concerns. Two years ago, the FTC reviewed Google's $3.1 billion proposal to purchase display advertising company DoubleClick, later clearing the transaction--the Journal noted DoubleClick and AdMob are similar types of companies, with both specializing in serving and targeting graphical ads across digital platforms.

For more on the FTC's moves:
- read this Wall Street Journal article

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