FTC Wants More Information on Google's AdMob Buy

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Observers said Google was looking for regulatory trouble. We covered it here at IT Business Edge as recently as two weeks ago, when I pointed to Brian Acohido's post in USA Today on the Federalist Society's debate on the search giant's monopolistic tendencies.


Between the debate, the legal headache that could come from the estate of author Philip Dick over the name Nexus One for its coming mobile phone, and the increased risk of libel liability that may arise from its integration of Twitter posts, Google does seem to be asking for more scrutiny. If that isn't enough, a Bloomberg story published in Business Week last week says the Federal Trade Commission is asking Google for more details on its proposed acquisition of AdMob.


Google announced its plan to purchase the mobile ad company last month, agreeing to pay $750 million in stock in an effort to "boost its sales" of ads that appear in mobile phone applications. At the time, and again today, the company indicated it doesn't "see any regulatory issues with this deal." In a blog post, group product manager Paul Feng emphasized that the mobile ad space is "highly competitive with more than a dozen ad networks."


FTC spokesperson Mitch Katz told Bloomberg the agency "does not comment on pending investigations."