Yesterday, the European Commission gave Google the green light to purchase DoubleClick despite the complaints of competitors like Microsoft, Yahoo! and AT&T and privacy advocates like the Center for Digital Democracy(CDD) and the Electronic Frontier Foundation (EFF).

The Commission dismissed the competitive concerns of Microsoft et al, saying:

The Commission’s in-depth investigation, opened in November 2007 concluded that the transaction would be unlikely to have harmful effects on consumers, either in ad serving or in intermediation in online advertising markets. The Commission has therefore concluded that the transaction would not significantly impede effective competition within the European Economic Area (EEA) or a significant part of it.

Like the FTC, the Commission sidestepped the privacy questions because they are not considered relevant to the merger review process in either legal environment. 

 

The Commission’s decision to clear the proposed merger is based exclusively on its appraisal under the EU Merger Regulation. It is without prejudice to the merged entity’s obligations under EU legislation in relation to the protection of individuals and the protection of privacy with regard to the processing of personal data and the Member States’ implementing legislation.

So, while the merger will go on, the new GooClick may still face regulatory challenges on the privacy front. 

From the ACT perspective, we look at it this way:

“The merger will undoubtedly change the competitive landscape of our industry and fuel the evolution of internet advertising.  It demonstrates both the dynamism of our industry and the need to give companies the flexibility necessary to adapt, compete, and meet the needs of consumers.”

Our friends at CDD has a slightly different perspective as outlined in an Infoworld article:

“By permitting Google to dramatically grow in clout, regulators will have to likely permit the further growth of a number-two competitor to Google, which will be Microsoft,” Chester said.

The result will be the emergence of a global digital duopoly over online advertising, Chester warned.