EU clears Google-DoubleClick buyout deal

Google has finally gotten what it has long wanted as the European Commission has cleared Google’s $3.1 billion buyout proposal to online advertising company DoubleClick. The EU has been deliberating on Google’s proposal since November 2007 after it has passed through the U.S. Anti-Trust Authorities.

In its in-depth investigation of the two companies involved, the EU has concluded that the pending transaction poses no threat to consumers in both ad serving and online advertising markets. Neither of the two companies exert significant competitive constraints on each other’s activities, the EU also note. Hence, the proposed Google acquisition will not affect competition within the European Economic Area (EEA).

During the course of the EU investigation, several competitors and concern trade companies have expressed concern over the adverse impact of the acquisition on the current state of the online advertising market. Particularly some parties were afraid that if the two companies merged, Google might have dominance on the online advertising market and lead to Google marginalizing its competitors. But the EU said that it would not happen since there are credible ad serving alternatives to which customers can switch. The EU cited Microsoft, Yahoo and AOL.

Additionally, the EU said that the merging of the two companies will not close off competitors’ access to the ad serving market because doing so would not be profitable for Google and DoubleClick.

The EU based its decision to clear Google’s acquisition of DoubleClick on EU existing merger regulations and that the decision was arrived at without any prejudice to Google and DoubleClick’s obligations under EU policies. This pertains to legislation relating to protection of individuals and their privacy.

Read [CNN Money]