Printed from http://www.electronista.com

FTC approves Google buyout of AdMob

updated 12:35 pm EDT, Fri May 21, 2010

FTC clears Google to take on Apple in mobile ads

The Federal Trade Commission on Friday approved Google's buyout of AdMob. The US agency unanimously decided that the takeover was "unlikely to harm competition" in mobile ads and specifically pointed to Apple's creation of iAd as proof competition would exist. Past strength wasn't necessarily an indication of the future, it said.

"As a result of Apple's entry (into the market), AdMob's success to date on the iPhone platform is unlikely to be an accurate predictor of AdMob's competitive significance going forward, whether AdMob is owned by Google or not," the FTC said.

Most of the justification came from the existence of rival smartphone platforms like BlackBerry, which give enough of an incentive for mobile ads to exist across multiple platforms. While Apple's iAd is iPhone-only, AdMob already targets most common smartphones.

Officials acknowledged that there were concerns about the competitiveness of the deal, which led to some developers feeling as though they were pressured to oppose it. Google and AdMob were portrayed as competing against each other and would have the advantage of sheer scale to outmuscle competitors. It's also unknown whether the two will be as innovative in mobile ads as they were while separate.

The FTC will monitor the space closely, according to the agency.

Apple may have inadvertently guaranteed that the AdMob deal would pass. CEO Steve Jobs previously acknowledged that Apple's buyout of mobile advertiser Quattro Wireless came after it missed an opportunity to buy AdMob. In creating iAd, it produced a competitor that otherwise wouldn't have existed, giving Google evidence it needed that it had strong competitors.


Share



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. jamck1977

    Fresh-Faced Recruit

    Joined: Feb 2010

    0

    Competition Anywhere Else?

    I suppose that the FTC knows what they're doing, but as the article states, Apples intentions are to market to iPhone OS users (20% of smart phones + iPad and iPod touch). That doesn't create competition for ads on other smartphones.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Razer Taipan mouse

The list of gaming devices is growing larger with each passing day. A large number of companies have entered the gaming input arena, a ...

Cambridge Audio DacMagic XS

Every computer with a microphone or headphone port has one -- a digital to analog converter (DAC). There are nearly as many chipsets a ...

D-Link Wi-Fi Smart Plug

Home automation fans have been getting their fair share of gadgets and accessories in the last few years. Starting with light bulbs, a ...

Sponsor

toggle

Most Commented

 
toggle

Popular News