European Union regulators will review Google Inc.'s plans to buy DoubleClick Inc. for $3.1 billion after national authorities declined to take the case.
Google, owner of the most-popular Internet search engine, asked the European Commission whether the deal should get an EU review. The EU examines mergers with more than 250 million euros ($341 million) in sales in the 27 member states, or 5 billion euros worldwide. National authorities can review transactions if more than two thirds of the revenue occurs in a single country.
``Given the pan-European nature of both Google and DoubleClick's businesses we felt that the commission was best placed to review the acquisition,'' Julia Holtz, a London-based competition lawyer for Google, said in an e-mail today.
Google announced plans to buy DoubleClick in April to bolster its sales of Internet ads that include pictures and videos. The move prompted companies including Microsoft Corp. and AT&T Inc. to ask for a review of the purchase, saying it would hurt competition in the $28.8 billion global online advertising market. The U.S. Federal Trade Commission began probing the deal on May 29.
DoubleClick competes with AQuantive Inc. Microsoft, the world's largest software maker, announced its plans to buy AQuantive on May 18 for about $6 billion.
Jonathan Todd, a commission spokesman, had no comment.
Google shares were little changed at 12:12 p.m. on the Nasdaq Stock Market in New York, down 78 cents, or 0.1 percent, at $540.85. The stock has gained 17 percent in value this year.
Market Definition
Google, based in Mountain View, California, generates revenue from selling text-based ads that appear next to search results. DoubleClick's products help advertisers measure how effective their ads are and allow Web publishers to track and manage online advertising. The ads are typically so-called display ads that include graphics or animation.
``Google and DoubleClick play different but complementary roles in online advertising,'' Alex Kinnier, Google's group product manager, said June 26 on the company's blog. ``Google primarily sells ads, and DoubleClick delivers (serves) ads.''
BEUC, a European consumer group, criticized the acquisition, saying in a June 27 letter to the commission that the takeover will give Google a monopoly in online advertising. The market share of the combined company would leave consumers with "no real ability to choose services other than those served by Google,'' the group said in the letter.
Source: bloomberg.com
Google, owner of the most-popular Internet search engine, asked the European Commission whether the deal should get an EU review. The EU examines mergers with more than 250 million euros ($341 million) in sales in the 27 member states, or 5 billion euros worldwide. National authorities can review transactions if more than two thirds of the revenue occurs in a single country.
``Given the pan-European nature of both Google and DoubleClick's businesses we felt that the commission was best placed to review the acquisition,'' Julia Holtz, a London-based competition lawyer for Google, said in an e-mail today.
Google announced plans to buy DoubleClick in April to bolster its sales of Internet ads that include pictures and videos. The move prompted companies including Microsoft Corp. and AT&T Inc. to ask for a review of the purchase, saying it would hurt competition in the $28.8 billion global online advertising market. The U.S. Federal Trade Commission began probing the deal on May 29.
DoubleClick competes with AQuantive Inc. Microsoft, the world's largest software maker, announced its plans to buy AQuantive on May 18 for about $6 billion.
Jonathan Todd, a commission spokesman, had no comment.
Google shares were little changed at 12:12 p.m. on the Nasdaq Stock Market in New York, down 78 cents, or 0.1 percent, at $540.85. The stock has gained 17 percent in value this year.
Market Definition
Google, based in Mountain View, California, generates revenue from selling text-based ads that appear next to search results. DoubleClick's products help advertisers measure how effective their ads are and allow Web publishers to track and manage online advertising. The ads are typically so-called display ads that include graphics or animation.
``Google and DoubleClick play different but complementary roles in online advertising,'' Alex Kinnier, Google's group product manager, said June 26 on the company's blog. ``Google primarily sells ads, and DoubleClick delivers (serves) ads.''
BEUC, a European consumer group, criticized the acquisition, saying in a June 27 letter to the commission that the takeover will give Google a monopoly in online advertising. The market share of the combined company would leave consumers with "no real ability to choose services other than those served by Google,'' the group said in the letter.
Source: bloomberg.com