With Brussels' green light, Google and DoubleClick can now merge without any further obstacle, creating a new Internet giant with a focus on online searchs and Web advertising.
Google, mostly known for its leading worldwide search engine, also has a stake in the market of online advertisement intermediation. This means that, through its network AdSense, the Californian company helps publishers and advertisers to trade advertising space on the Internet.
On its side, DoubleClick is the leader in providing ad serving technology. Its software allows the placement of ads on the most relevant sites, pages and positions.
The Commission concluded that the two markets mainly concerned by the merger - online advertising intermediation and ad serving - would not be affected.
Indeed, DoubleClick is not at the moment a significant actor in the intermediation market, according to the analysis of the Commission. Therefore its acquisition will not deprive the market of an important competitor.
At the same time, the Commission concludes that Google is not likely to use its new power on the ad serving market to hamper competition “mainly because such strategies would be unlikely to be profitable”.
As already anticipated by competition officials, Brussels has no competencies in judging a merger on privacy grounds (see EurActiv 14/01/08). Therefore the concerns raised by several actors about the potential risks to personal data protection were not taken into consideration by this decision. The consequences of the merger of two of the biggest online databases will instead have to be studied at national level.
Meanwhile, the Article 29 Working Group, which brings togheter the 27 authorities charged of protecting privacy at national level, will issue next April a recommendation on the use of private data by search engines. People familiar with the subject say that companies are likely to be asked to reduce the time they keep personal information - a measure already announced by Google which, at the moment, is able to store IP addresses and other online private data for years (see EurActiv 07/02/08).



