Google DoubleClick v FTC

FREE IFN Newsletter

Google/DoubleClick V. FTC...

By: Jordan McCollum
2007-12-14

...Round 15,627,734,234.7. As if the title werent enough to tip you off, take a peak at some of the headlines that have gotten my attention today...

...(dont worry, this isnt Linky Goodness or Pilgrims Picks, Im still going to hold your hand and tell you what to think):

* Congress Member Turns Up Heat On Google
* House Republican targets Google on privacy grounds
* Congressman Laments Cold Shoulder from Google
* Google-DoubleClick deal hit by deleted Web page controversy
* FTC Chairs Potential Bias on Google-Doubleclick Deal Questioned
* Groups ask FTC chair to recuse in Google-DoubleClick review
* Google-DoubleClick Merger Encounters More Setbacks On Capitol Hill
* Sources: FTC extends Google-DoubleClick review

As I said, this isnt a links post, so Ill summarize all that for you (Im just making sure I get all my attribution links in there!), and add my two cents, FWIW. (Okay, I think Im really clever today.)

Battle lines bein drawn. Nobodys right if everybodys wrong

First off, Representative Joe Barton (R-TX) tried to arrange for House staffers to visit the Googleplex. Their schedules never worked out, and since then Barton says hes been rebuffed by Google in their further attempts to find a convenient time (its not like theyre busy in the plex or anything. Or DC.).

So Barton has written a letter consisting of twenty-four multi-part questions for Google to answer"most of them about privacy.

A lot of these questions, as reprinted on CNET, are pretty hard hitting, though a few make me think he certainly could have figured it out himself (Please explain whether Google posts a link to its privacy policy on the home page or search results page of www.google.com and Please explain the technology called rich media or interactive multimedia, how this technology works, and what information may be collected by its use.).

Barton or someone in his office clearly does have an understanding of many Internet and online advertising technologies, since his questions include questions about anonymizing IP data and cookie data, resetting cookies and specifics about user information collection, storage, retention and access. Barton also quotes Googles policies and asks for specific clarification and definitions of terms that Google uses. Finally, he asks if and how user data from DoubleClick, if approved, will be segregated from Googles other user data.

It would be nice to have a detailed response from Google"and every other search engine, including Ask"to each of these concerns. However, based on CEO Eric Schmidts response, I dont think a public answer is forthcoming.

Step outta line, the man come and take you away

Barton, of course, isnt the only one worried about privacy issues with Google. The review of their pending merger with DoubleClick has taken eight months"while similar deals between Yahoo & Right Media and Microsoft & aQuantive were quickly okayed. The final deadline for the decision was supposed to be today"and Im gonna guess that theyre not ready yet. Rumor has it that they have extended that deadline.

Somethings happening here, what it is aint exactly clear

And then, to make matters murkier (and slower), everyones favorite FTC lobbyists, the Electronic Privacy Information Center and the Center for Digital Democracy (EPIC and CDD, respectively), have asked FTC Chair Deborah Platt Majoras to recuse herself from the committee for this decision, citing a potential conflict of interest.

The conflict itself, however, is a point of controversy. Majorass husband is a partner at the law firm of Jones Day. Jones Days clients include DoubleClick. While it seems pretty clear cut at first"Majoras has recused herself from other decisions involving her husbands clients"it gets a bit more confused as DoubleClick and Jones Day insist that the law firms representation only refers to the European approval process, not the FTC case.

However, the Jones Day website used to state that:

"Jones Day is advising DoubleClick Inc., the digital marketing technology provider, on the international and U.S. antitrust and competition law aspects of its planned $3.1 billion acquisition by Google Inc."

(This wording was removed; however, Google retains its cached copy. A touch of irony for you there.)

Both Jones Day and DoubleClick maintain that the law firm is used only outside of the US. DoubleClick has even clarified to CNET that their domestic law firm is Simpson Thatcher.

Paranoia strikes deep; into your life it will creep

Best of all, as paidContent reminds us, the FTC has long said that its not concerned with the privacy implications of the merger, just the antitrust issues. Interestingly, as CNET reminds us, the FTC hasnt challenged a vertical merger in about thirty years.

Antitrust laws are basically designed to prevent monopolies. So a horizontal merger, like Google buying Yahoo (what that reference start the rumor mill!), receives a lot more scrutiny than a vertical merger, like Google buying DoubleClick, or any other company thats not a competitor in its sector.

The bottom line: (Young people speaking their minds)
I still dont see what the FTC is waffling over. Yes, I see that the DoubleClick/Google merger is a potential privacy nightmare. But the FTC, while charged with protecting consumers, has decided to ignore those issues and look only at the competition problems. If thats truly the case, then Google deserves the same approval that Microsoft and Yahoo have received. After all, we want them to be able to compete among themselves, dont we?

The reality is, of course, that the only real reason the FTC hasnt already approved the merger has got to be that they are worried about consumers privacy. Perhaps Google (who has complied with the FTCs requests thus far) should consider publicly answering Rep. Bartons questions to set the minds of Congress, the FTC and the rest of us at ease.

Comments

Tag: Google, DoubleClick, FTC

Add to

Del.icio.us |

Digg |

Reddit |

Furl

About the Author:
Jordan McCollum is a staff writer for the popular marketing blog Marketing Pilgrim. She has worked in search engine optimization with clients including 3M, Little Giant Ladders and ADP. After graduating from Brigham Young University, Jordan joined the SEO copywriting team at the Internet marketing firm 10x Marketing. After 10x closed its doors in December 2006, Jordan became a freelance writer and Internet marketing consultant specializing in SEO. She also has extensive experience with web analytics, conversion rate enhancement and e-mail marketing.


Titan Quest Forum	Nintendo Wii	Graphics Forum
Halo 3 Forum	Mac Software