March 12, 2008

Google’s and Doubleclick get Euro approval

The merger between Google and the online advertising business Double Click has been given the all clear by the European regulators, stating that there would be no harmful effects on consumers. Originally the proposed merger had been opposed by Google’s rivals Microsoft and Yahoo, as they were concerned about the advertising.

However it was decided that the two companies would be able to work without conflict of interest and therefore would not be in a position where they could have some sort of influence over the online advertising rates, which was the main worry.

The trouble with mergers as opposed to a direct takeover is that the firms remain more or less as they were, so although they are effectively partners they are able to compete on a level playing field which is why the authorities are always reluctant to interfere when it comes to mergers.

Source [NY Times]