Google Can Thank Apple For FTC’s Approval Of Its AdMob Purchase
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The FTC has unanimously approved Google’s $750 million purchase of AdMob to make it the largest advertising network in mobile.
Despite how many believed the FTC was leaning, the regulatory body said it approved the deal after “thoroughly reviewing the deal and concluding that it is unlikely to harm competition in the emerging market for mobile advertising networks.”
That doesn’t mean the decision was made lightly, and ultimately it sounds like Apple’s move into the space is what saved it in the end. In a statement issued today, the Commission said that although the combination of the two leading mobile advertising networks raised serious antitrust issues, “the agency’s concerns ultimately were overshadowed by recent developments in the market, most notably a move by Apple (NSDQ: AAPL) Computer Inc. – the maker of the iPhone – to launch its own, competing mobile ad network.”
The Commission vote to close the investigation was 5-0.
The decision ends a six-month inquiry that had Google (NSDQ: GOOG) and AdMob executives flying to the east coast routinely to talk to regulators. Many developers were interviewed and questioned as to the landscape of mobile advertising, and most were reluctant to say that Google’s acquisition of AdMob would consist of any threat. In comparison with other advertising formats, mobile advertising is just a blip on the radar screen with dozens of startups still duking it out in the space, and more recently with Apple’s introduction of the iAd for advertising in mobile applications.
The Commission’s statement read: “As a result of Apple’s entry (into the market), AdMob’s success to date on the iPhone platform is unlikely to be an accurate predictor of AdMob’s competitive significance going forward, whether AdMob is owned by Google or not.”
The approval saves Google a potential year-long battle in court, and potentially $700 million, which was the rumored fee if the sale didn’t go through. It also leaves the door open to other significant players in the space, like Microsoft (NSDQ: MSFT) or Yahoo (NSDQ: YHOO), to continue consolidation in the space, but were hesitating to purchase a competitor if it meant strict regulatory hurdles.
In a statement, AdMob’s Founder and CEO Omar Hamoui, said: “We are extremely pleased with today’s decision from the Federal Trade Commission to clear Google’s acquisition of AdMob. Over the past six months we’ve received a great deal of support from across the mobile industry – and we deeply appreciate it. Our focus is now on working with the team at Google to quickly close the deal.” A full blog post on how it intends on working with Google to launch new products can be found here. Google echoed the urgency of getting started on the integration of the two companies in a statement: “As an immediate matter, we’re now moving to close this acquisition in coming weeks. We’ll then start work right away on bringing AdMob’s and Google’s teams and products together. This industry is moving fast, and we’re excited to be part of the race!
Find the FTC’s complete statements here.
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