Microsoft Fights against the Google-DoubleClick Deal

On Friday, Google announced its acquisition of DoubleClick for $3.1 billion is cash. Other players like Microsoft, Time Warner, and Yahoo where also involved in the bidding war, but they lost for Google. If Microsoft had won DoubleClick, it would have put them in a significant position in the online advertising business, but they didn’t win. Now Microsoft is fighting against the deal and expects companies like Yahoo and AT&T to support them. In an interview with New York Times, Microsoft’s general counsel, Bradford L. Smith said:

“The purchase of DoubleClick by Google would combine the two largest distributors of online advertising and thus substantially reduce competition in the advertising market on the Web.”

However, Google’s chief executive, Eric E. Schmidt dismissed Microsoft’s claims by saying that they are not true. Microsoft was joined by AT&T which said antitrust authorities should take a hard look at this deal and implications. Google already owns a significant portion of online advertising business and if this deal goes through, Google will be the leader of online advertising business by 85% of the ad distribution market.

Last year, Microsoft was the target of an anticompetitive claim by Google, but now we see the tables turned. Yahoo was also involved in the bid war, and they are expected to raise their voice against the deal as well.

From a neutral end, I’m not happy with Google dominating the ad business with over 85%. What do you feel about the deal?

Source: Cybernetnews