The purchase of DoubleClick by Google that took place last month for the low low price of $3.1bln is now in jeopardy of being stopped. In the realm of the pot calling the kettle black, Microsoft is complaining that this purchase too much power in the online marketing sector. I won’t get into how Micro$oft has formed their own monopoly over the past 2 decades in the personal computer software, as you’ve read it all before. Now, Microsoft, along with AT&T, are complaining that this will combine the two largest advertising distributors on the internet. Oh yea, did I mention, Microsoft lost the bid to buy DoubleClick to Google?
Microsoft and AT&T’s biggest issue seems to be that they will lose a lot of market share in the highly profitable arena of online advertisements. That market reached over $17bln last year.
The real concern for many people regarding this acquisition by Google is that of privacy. The union of Google and DoubleClick poses risks to consumers by allowing Google to track the online activity of individuals more closely. The Electronic Privacy Information Center has raised this concern to the FTC.
EPIC’s Complaint
On April 20, 2007, EPIC, CDD, and US PIRG filed a complaint (pdf) with the Federal Trade Commission (FTC), urging the Commission to open an investigation into the proposed acquisition of DoubleClick by Google. The groups urged the FTC to assesses the ability of Google to record, analyze, track, and profile the activities of Internet users with data that is both personally identifiable and data that is not personally identifiable. The groups stressed that the increased collection of personal information of Internet users by Internet advertisers poses far-reaching privacy concerns that the FTC should address. The groups further noted that Google fails to follow previously agreed upon standards for online advertising conduct, and urged the FTC to to require Google to publicly present a plan to comply with these standards. Pending the resolution of these and other issues, EPIC encouraged the FTC to halt the acquisition.
Well, the FTC is now investigating it. I don’t expect anything to come of this investigation, but find it interesting that Microsoft of all people is complaining. What are your thoughts?