Google-DoubleClick Deal moving Ahead

A Harvard Law blog gives us a lawyerly look at the deal. The big issue that has some people up in arms is one of consumer privacy, that is, will Google-DoubleClick have the ability to gather too much information on us? Here we read some of the text from the commissioner's decision, specifically noting that first, they have no legal right to block a merger based on privacy issues, and second, these issues are not unique to Google and DoubleClick.

It's no secret that Microsoft was one of the biggest opponents of the merger, and a New York Times blog summarizes the lengths Microsoft went to in order to put a stop to it, including providing several documents to the FTC for consideration. Microsoft claimed that the deal would impair the capability of Google rivals-including Microsoft itself, of course-to sell and to serve online ads. Naturally, Microsoft would like a bigger piece of this pie for itself.

Google's blog states their own position on the issue, with a point-by-point detail of the results of the FTC decision. Again here, Google reiterates the argument that the privacy concern is not relevant to the merger issue. And from a legal perspective, it would seem they're right. Of course, privacy is a concern, and may be more appropriately addressed in another forum besides the FTC's merger review. Google's blog claims that the deal will actually increase competition, and bring benefits to consumers, web publishers and advertisers. When you consider it objectively, they are probably right on at least the latter front, the combination of Google and DoubleClick will bring about some good things. Web publishers will have more options, advertisers will have a broader and better targeted audience, and as far as consumers, there is a benefit so long as one assumes that having more targeted ads on your browser page is a benefit. Personally, having relevant ads on the web pages I read seems like a pretty good idea. There are much greater privacy issues out there that are far more serious. On Google's first point, that the deal will increase competition, that's somewhat of a longshot argument, but Google did make a big point of parading out Microsoft's big Viacom deal as evidence of the existence of competition. But will competition actually increase? How likely is it that somebody could come along and create another Google? Many have tried, and many have failed.

Google still isn't done fighting its battle yet, though, and the deal must also be approved by the European Commission. This may not be quite the slam dunk as getting through the FTC was, and some of the problems here are highlighted by the Silicon Alley Insider. The EU may place additional conditions on Google as part of approval, or they may reject it altogether. It's in the hands of the Europeans now, so we will have to wait another three to four months to see the final outcome.