Google's AdMob Purchase Said to Be Opposed by U.S. FTC Staff

Apparently, Federal Trade Commission staff are urging the filing of an antitrust suit challenging Google's $750 million acquisition of AdMob.

It will be up to the five-member commission to decide whether to follow the staff's advice or approve the deal. The FTC staff signaled last month it was leaning toward urging a court challenge when it was disclosed the agency was seeking sworn declarations from Google's competitors and advertisers. The concern is that Google, owner of the world's most popular web search engine, would reduce competition in the market for advertising on mobile phones. AdMob sells ads that appear on web pages and applications on mobile phones. Google's purchase of AdMob would form the largest mobile- advertising company. The companies combined had 21 percent of the U.S. market in 2009, according to Karsten Weide, an analyst with researcher IDC in San Mateo. The market has been doubling or more in size annually, Weide said.