The article talks about how Google was trying to buy DoubleClick, which is an Internet advertising company. Google was prepared to buy the company, but the European Commission refused to approve Google's $3.1 billion purchase. The reason why this deal did not go through was because the European Union was concerned about competition and it need more time to think over the impact such a merger would have on the Internet advertising business. Also, they are waiting on approval from the U.S. Federal Trade Commission. Furthermore, Internet regulators in Australia and Brazil have approved the deal.
Privacy issues also come into play in this article because since Google is can gather a lot of data in terms of demographics. Having a large advertisement company like DoubleClick use the information to make a marketing entity would be like having direct information from the IRS. ComScore performed a study of Internet searches and discovered that almost 57 percent of Internet searches are done through Google. Since that is true the information Google collects through their search references people use. That information could be used to place advertisements on the sites owned or run by Google. Since the European Commission rejected the merger between Google and ComScore, it is still unknown what Google will do.
I am kind of glad this merger did not work with the European Commission because what is searched on the Internet is the customers choice and that information should not be used to help companies figure out what what advertisements to make. Even though people with stocks in Google would have loved if the merger worked out. It would have probably would increased Google's revenue. Google could still be able to get ComScore because the U.S. Federal Trade Commission still has not given their opinion about it.
6 comments:
The EU feels quite strongly about these issues. American high tech companies encounter numerous obstacles- Microsoft is another example.
At one time there were numerous companies offering technology solutions that target advertising. Many of these have been bought by largerer software firms. Currently, the last publicly traded firm is Omniture (OMTR). With only a few firms left this will definately conintue to cause concerns with regulators.
I would think Google would have learned from Microsoft. As a consumer I do not want my search information given out to companies. Even though companies take my search information and make suggestions I still do not want my information given out without my approval.
It is good strategy for google to take search information and make suggestion, however, like John said, I don't want my information to be used without notice.
Thanks for posting such an interesting article. Overall, the EU is more strict on regulation of business interactions compared to the U.S. Google does release certain information about their users though. When using Gmail, advertisements within your mailbox are specifically tailored to what the content of your email subjects. This shows that Google is already on track to release consumer information to advertisers.
I think the EU is on the right step by questioning Google’s takeover bid, as it may lead to anti-competitive practices and may not be in the consumer’s best interest. Also, as Rehan mentions, Google can tailor make a lot of information or ad’s you have access to, and there could be disadvantages when one organization has so much power of what one can do on the internet.
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