Goo
gle has been given a green signal by FTC to acquire AdMob, one of the world’s largest mobile advertising networks. With this deal on floor, Google is set to give a neck to neck competition to Apple who bought Quattro Wireless, an AdMob rival in January.
FTC was earlier appealed that the merger is going to give an unfair advantage to Google in the market of Mobile Phone Advertising. This appeal was today rejected by the Trade Commission saying that “the combination of Google and AdMob raised serious antitrust issues but that recent developments overshadowed those issues.”
The FTC staff had recommended challenging the deal but legal experts say regulators would have had a hard time showing Google would dominate a market that is still in its infancy.
“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,” the FTC said in a statement Friday.
AdMob was founded in 2006 by an entrepreneur trying to solve a problem. Omar Hamoui wanted to build traffic for his mobile site. He encountered complexity and fragmentation – it was just too hard to engage users. AdMob was born to remove roadblocks and enable mobile web businesses.
According to Susan Wojcicki, Vice President of Product Management at Google, they will be closing the deal in coming weeks after getting the permission to do so.
With the rapid increase in usage of mobile phones, mobile advertising also increases, market keeps on getting bigger and bigger day after day. Such mergers are going to be a boon for developers and publishers providing them better advertising solutions, marketers will find new ways to reach consumers, and users will get better ads and more free content.
Healthy competition in any kind of market is very much necessary to abolish monopoly. Customers are befitted by innovation, invention and superior products at economical rates.
via Google blog
