Congress Reviews Google – DoubleClick Inc. Deal

- July 26, 2007

Since Google’s proposed purchase of DoubleClick for $3.1 billion back in April, it seems as though the internet world has been waiting to see how congress would react to the purchase. Congress has finally shown its first reaction. Congress claims they plan to analyze Google’s proposed acquisition of DoubleClick to determine the potential impacts on consumer privacy and competition in the online advertising business.

Hearings are set to begin in late summer or early fall. The Senate Judiciary Committee’s antitrust subcommittee and the House Energy and Commerce Committee’s consumer protection subcommittee will be calling Google executives to testify about the proposal. Last Tuesday, Bobby Rush whom is on the House subcommittee, stated in a letter to the Federal Trade Commission, that there seems to be a “growing alarm over the implications for consumer privacy from the practices of these companies, especially if they combine.”

First reactions when Google made the announcement from internet agencies were that the acquisition would give Google access to an unprecedented amount of data on consumers’ Web usage and Internet search preferences. Google will not only gain the largest market share of the Banner Ads market, but will also be running an internet marketing agency. This acquisition will give Google inside information that they can use to launch new programs or possibly fine tune their search results. If Google knows exactly what the consumer is looking for, this will allow them to make “tweaks” or “changes” to their products; making it a lot harder for Yahoo or MSN to compete.

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