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Government May Challenge The GOOGLE ADMOB Deal,FTC on the hunt

Posted by admin On March - 11 - 2010 Comments Off

U.S. Federal Trade Commission is currently asking Google advertisers and competitors for more information about the potential impact of the deal, Bloomberg reported Wednesday. Those companies–which weren’t identified–are being asked to sign sworn statements that could potentially be used against Google in a court hearing blocking or altering the deal, according to the report.The Federal Trade Commission is investigating whether Google’s proposed purchase of AdMob would reduce competition in the market for Internet advertising on mobile phones.

Google Inc (GOOG.O) said the U.S. government is seeking more information about the competitive impact of its proposed $750 million purchase of AdMob on the nascent market for mobile advertising.It also stat that they are ongoing in discussions with the FTC over the past few weeks and that it will work closely and cooperate with the commission as it continues its review of the deal.Google and AdMob combined would form the largest mobile- advertising company, the companies combined had 21 percent of the U.S. market in 2009, according to Karsten Weide, an analyst with researcher IDC in San Mateo, California.

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