FTC Won't Block Google-AdMob Merger, Cites Apple's iAd as Competitive Factor
The U.S. Federal Trade Commission (FTC) today announced that it has closed its investigation of the proposed acquisition of mobile advertising firm AdMob by Google. The FTC had been seen as likely to oppose the move over antitrust issues, but cited Apple's recent announcement of its own iAd mobile ad service as a significant factor in the decision to not take action against the Google-AdMob proposal.
In a statement issued today, the Commission said that although the combination of the two leading mobile advertising networks raised serious antitrust issues, the agency's concerns ultimately were overshadowed by recent developments in the market, most notably a move by Apple Computer Inc. - the maker of the iPhone - to launch its own, competing mobile ad network. In addition, a number of firms appear to be developing or acquiring smartphone platforms to better compete against Apple's iPhone and Google's Android, and these firms would have a strong incentive to facilitate competition among mobile advertising networks.
"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 going forward, whether AdMob is owned by Google or not," the Commission's statement explains.
Full details of the FTC decision on the Google-AdMob situation can be found in a set of PDF documents on the commission's site:
- Statement of the Commission
- Closing Letter to Google
- Closing Letter to AdMob
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How can Apple be seen as a serious competitor when it has intentionally limited its self to a small segment of the market?
I would agree with the FTC if the Iphone were the entire mobile market, or even a majority. But Google and AdMob are afaik aiming for all mobile platforms. While Apple's iAd will only be available on the iphone, correct?
How can Apple be seen as a serious competitor when it has intentionally limited its self to a small segment of the market?
Apple had to have understood this could happen. Was it immensely important to announce iAds when they did? It seems it would have been a shrewd business decision to announce after the FTC made its decision. If it mattered to them. Which is why this makes me think they don't care.
I agree - I think by now it is clear that Apple knows what they are doing.
Apple had to have understood this could happen. Was it immensely important to announce iAds when they did? It seems it would have been a shrewd business decision to announce after the FTC made its decision. If it mattered to them. Which is why this makes me think they don't care.
As soon as iAds were announced, Google could appeal FTC's decision. It may have taken a few months longer to finalize, but it would delay iAds as well. In the end, it would not make that much sense to delay.
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