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Consumer groups ask FTC to block $750M Google-AdMob deal

Consumer Watchdog and the Center for Digital Democracy asked the Federal Trade Commission to block Google?s $750 million deal to buy AdMob, claiming the deal poses several antitrust issues and raises privacy concerns.

In a joint letter to the FTC, the two consumer groups said that Google should not be allowed to buy its way to dominance in the mobile advertising market because it will diminish competition to the detriment of consumers. 
 
?The mobile sector is the next frontier of the digital revolution," the letter says. "Without vigorous competition and strong privacy guarantees this vital and growing segment of the online economy will be stifled."

?Consumers will face higher prices, less innovation and fewer choices,? it says. ?The FTC should conduct the appropriate investigation, block the proposed Google/AdMob deal, and also address the privacy issues.?

Increased scrutiny
Last week the FTC made a second request for additional information about the deal, indicating the commission is scrutinizing the proposal.

Besides the antitrust issues, the letter from the two nonprofit groups said a combined Google/AdMob raises privacy concerns. 

Both AdMob and Google gather large amounts of data about consumers? online behavior, including their location. 

AdMob targets consumers using behavior, ethnicity, age and gender, and education. In addition to its extensive mobile ad apparatus, Google also provides mobile advertising and data driven analytical services through its DoubleClick subsidiary. 

The consolidation of AdMob into Google would provide significant amounts of data for tracking, profiling and targeting U.S. mobile consumers, per the two consumer groups.

?Permitting the expansion of mobile advertising through the combination of these two market leaders without requiring privacy guarantees poses a serious threat to consumers,? the letter says.