EU antitrust regulators launched an in-depth probe on Tuesday into Google Inc's US$3.1 billion bid for online ad tracker DoubleClick, saying an initial investigation showed the deal would raise competition concerns.
The EU's executive Commission set an April 2 deadline by which to reach a final decision on the deal, which has raised concerns by Google's rivals Microsoft Corp and Yahoo Inc -- both of which fear it will shrink competition for Internet advertising.
The European Commission described Google and DoubleClick as "the leading providers" of online advertising space and services and ad-serving technology, and said its extended probe would examine whether the deal "could lead to anti-competitive restrictions for competitors operating in these markets and thus harm consumers."
DoubleClick helps its customers place and track online advertising, including search ads, which Google -- more than its nearest search competitors Yahoo and Microsoft -- has turned into an extremely lucrative business. It places ads on Web pages that targeted consumers are likely to use, generating money for smaller publishers and lesser-visited pages.
The EU said a preliminary probe, launched after Google notified the EU of its bid for New York-based DoubleClick in September, found the proposed merger "would raise competition concerns."
Google chief executive Eric Schmidt said the company was "obviously disappointed" by the EU decision to extend the review.
"We will continue to work with the Commission to demonstrate how our proposed acquisition will benefit publishers, advertisers and consumers," Schmidt said in a statement. "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."
Other advertisers have expressed concerns that the deal would leave Google in a dominant position on the Internet, while consumer advocates have cited concerns about data privacy and the knock-on effect on media that increasingly rely on Internet ads to pull in revenue.
Yahoo Europe's managing director Toby Coppel welcomed the EU investigation, saying it "was needed."
"Competitive online advertising markets in Europe are of great importance to publishers and advertisers, as well as being key to innovation and consumer choice," Coppel said.
Jeff Chester, executive director of Washington-based Center for Digital Democracy, said the full-scale probe proved that the EU "recognizes the serious consequences" of the Google-DoubleClick deal.
"Google is quickly becoming the key digital gatekeeper for the online publishing and advertising marketplace," Chester said. "At stake here is more than just the skyrocketing Google share price ... there must be meaningful competition and consumer protection in the online ad sector."
Google has insisted, however, that joining it with DoubleClick would help expand the booming Internet ad market.
The company's rivals have been looking to beef up their Internet advertising capabilities, with Microsoft buying Seattle-based online advertising firm aQuantive Inc and advertising conglomerate WPP Group PLC's purchase of online ad company 24/7 Real Media Inc.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS