A decision due this week on whether to prevent Google from purchasing the AdMob advertising network has been postponed because of complications created by Apple’s aggressive foray into online advertising, according to a report in the “New York Times” (http://www.nytimes.com/2010/05/12/technology/12google.html).
The Federal Trade Commission (FCC) got a two-week extension from Google and AdMob for its review of Google’s US$750 million acquisition, two people briefed on the review process told the “Times.” The agency wants to use the additional time, in part, to better understand the competitive effects of Apple’s purchase of Quattro Wireless, an AdMob rival, and Apple’s impending introduction of its new iAds mobile advertising system, the article adds.
Google, which derives 99% of its revenue from online ads, announced in November its intention to purchase AdMob, one of the world’s largest mobile ad networks, for $750 million. The deal immediately raised antitrust concerns.
It was announced in January that Apple would purchase Quattro Wireless for a reported $275 million. Quattro Wireless is a global mobile advertising company. It’s designed to “empower advertisers and publishers to reach and engage their target audiences across mobile web, application and video platforms with unrivaled precision, transparency and ROI.”