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Google Inc’s application for $750 million acquisition of AdMob Inc. has been approved by the US Federal Trade Commission.
The claim that the purchase would reduce competition in the market was rejected by the commission. Google is the leader of internet advertising and with AdMob it formed the largest mobile advertising company.
The FTC in a statement on its website said that the deal is “unlikely to harm competition in the emerging market for mobile advertising networks,”
Apple’s inroads into the market resulted in the FTC’s decision. It also meant that there could be more competition that originally thought of. The introduction of iAd reduced the worries of the regulators’ as iAd generates revenues generated from Apple’s handheld devices.
In 2009 Google and AdMob had a joint market share of 21%.
In the recent times the developments related to Cupertino have been delayed by FTC. Apple’s conditions on the software developers and advertisers for the iAd system were not convincing enough for FTC.
“As a result of Apple’s entry into the market, AdMob’s success to date on the iPhone platform is unlikely to be an accurate predictor of AdMob’s competitive significance,” the FTC statement said today.
FTC’s commissioners have taken a 5-0 decision which shows a clear shift in the thought process as against the earlier signs when it meant that it was planning to oppose AdMob being acquired by Google.
The agency had sought sworn declaration from Mountain View, Google competitor and advertiser.
Attorneys felt that Google’s dominance would be difficult to show for FTC as the market is a developing one.
Advertisers said they were concerned the acquisition would lead to higher rates.
Even before Google had purchased AdMob an antitrust scrutiny of Google had started off.
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