Study: Google Would Raise DoubleClick Prices

    September 27, 2007
    WebProNews Staff

The Social Science Research Network (SSRN) released an antitrust analysis of the proposed Google and DoubleClick, and suggested the deal would harm DoubleClick’s display ad clients.

Study: Google Would Raise DoubleClick Prices
Study: Google Would Raise DoubleClick Prices

A Senate Judiciary subcommittee hearing on the Google and DoubleClick merger takes place later today. SSRN fanned the flames of antitrust controversy by publishing its study ahead of the hearing.

Robert W. Hahn, AEI-Brookings Joint Center for Regulatory Studies, and Hal Singer, Criterion Economics, found the arguments in favor of the merger don’t hold up under scrutiny. One part of their paper considered the impact of all the consumer behavior data Google would receive from DoubleClick in the acquisition (spacing added for clarity):

If consumer data generates increasing returns to scale, as some academics have asserted, Google would extend their lead in search ads and possibly also their new position in graphic ads.