iEntry 10th Anniversary RSS Newsletter Advertising
Join the WebProWorld Forum!

Microsoft Complains About DoubleClick Deal

Post to Twitter Post to Facebook

Allowing Google to acquire advertising network operator DoubleClick would create an imbalance in the online ad market, and Microsoft thinks the deal should be quashed by regulators.

Microsoft Complains About DoubleClick Deal
Does Microsoft Work and Play Well With Others?

Google's $3.1 billion bid for DoubleClick has become a lightning rod for criticism since its announcement on Friday the 13th. Microsoft has no desire to play camp counselor to Google's Jason Voorhees, and has called for a review of the deal.

Brad Smith, Senior Vice President and General Counsel at Microsoft, said in a statement: "This proposed acquisition raises serious competition and privacy concerns in that it gives the Google DoubleClick combination unprecedented control in the delivery of online advertising, and access to a huge amount of consumer information by tracking what customers do online.

"We think this merger deserves close scrutiny from regulatory authorities to ensure a competitive online advertising market."

AT&T, AOL, and Yahoo, have also complained after Google came along with its massive all-cash deal to scoop up the prize. Yahoo and AOL had been in the running for DoubleClick along with Microsoft, while AT&T seems to fear Google could treat them and other broadband providers as mere conduits for information, the New York Times said:

"We think antitrust authorities should take a hard look at this deal and the implications," said Jim Cicconi, senior executive vice president for external affairs at AT&T. "If any one company gets a hammerlock on the online advertising space, as Google seems to be trying to do, that is worrisome."

"For many of these new Web services, it could be that the advertising-supported model is the predominant business model," he said. "The danger here is that Google could be in a position to pick winners and losers."

In the same report, Google CEO Eric Schmidt dismissed Microsoft's concerns: "We’ve studied this closely, and their claims, as stated, are not true."

It would be easy to mock Microsoft for its antitrust complaints, as Andy Beal did on his blog. Microsoft has been in antitrust fights in the US and Europe, due to their business practices.

AT&T's insertion into the discussion is more interesting. The virtually reconstructed telecom monolith wants to be an online player, to compete with broadband providers like Comcast. They have no desire to be relegated to utility status.

Even though Microsoft made the first noise about antitrust concerns, AT&T could be the company with the stronger case against the DoubleClick deal.

1 Comment

The real issue

What Google should really be focusing on is cost per action marketing, not display ads... CPA is where the industry is heading, because advertisers want efficiency, control and ROI. The DoubleClick deal won't really help Google here since DC has very little share in this market.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
2 + 0 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.
Featured Headline
Fake Chrome OS Screenshots Punk Tech Media
Mystery Blogger Comes Clean
3 comments | 14 hours ago
 
Subscribe to WebProNews


Send me relevant info