EU Probes Google-DoubleClick Deal

EU Launches Extended ProbeOf Google-DoubleClick Deal
By PEPPI KIVINIEMI
BRUSSELS -- The European Commission Tuesday said it has launched a full-scale antitrust investigation into the proposed takeover by Google Inc. of Internet advertising broker DoubleClick, worried that the deal might concentrate too much online advertising in one entity.
The commission now has 90 working days - until April 2 - to decide whether to clear or block the merger. The commission's initial market investigation showed that the merger would raise questions in the markets for "intermediation and ad serving in online advertising."
The $3.1 billion acquisition has come under criticism by competitors and clients who fear that the combined entity would be in a uniquely dominant position in the online advertising markets, giving Google a vast presence in both search and display advertising.
Google maintains that the two companies are complementary, rather than direct competitors. However the commission said it is especially interested in whether DoubleClick would have grown into a proper competitor of Google on its side of the online advertising markets.
The commission will also investigate whether the merger - which combines the leading providers of various aspects of online advertising - could restrict competitors from freely entering these markets.