Welcome!

API Journal Authors: Jeev Trika, Elizabeth White, Kevin Benedict, Anders Wallgren, Amit Golander

Related Topics: API Journal

API Journal: Article

Who's Making Book on the Google-DoubleClick Deal Going Through?

Well, now we'll get to see just how powerful Microsoft really is

Well, now we'll get to see just how powerful Microsoft really is.

The test is whether it can stop Google from taking over DoubleClick and becoming, in Microsoft's words, the "dominant pipeline for all forms of online advertising" as well as "the largest database of online user data in the world."

The Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights held a webcast two-hour hearing Thursday afternoon on Google's proposed $3.1 billion acquisition of DoubleClick, the advertising company Google outbid Microsoft for.

Google's general counsel David Drummond turned up as did his opposition, Microsoft's general counsel Brad Smith, Thomas Lenard, senior fellow of the Progress and Freedom Foundation, Scott Cleland, president of Precursor LLC and Marc Rotenberg, executive director of the Electronic Privacy Information Center.

The subcommittee can't do much about the proposed merger on its own but it can whisper its takeaways into the ear of the Federal Trade Commission, which is reviewing the acquisition, and could stop it dead in its tracks or weigh it down with a lot of conditions.

Microsoft wants it flat out stopped, arguing on the privacy side that "This country doesn't permit a phone company to listen to what you say and use that information to target ads. The computer industry doesn't permit a software company to record what you type and use that information to target ads. Yet with this merger, Google seeks to record almost everything you see and so on the Internet and use that information to target ads. One question is whether this merger will create a whole new meaning to the term 'being googled.'"

Microsoft claims that with DoubleClick under its belt Google "will account for nearly 80% of all spending on non-search ads" along with a good chunk of the economy, a situation that will be "bad for publishers, bad for advertisers, and most importantly, bad for consumers."

Combined Google and DoubleClick will create a barrier to entry, Smith told the subcommittee, akin to the New York Stock Exchange uniting with Nasdaq. "Who would go anywhere else? What chance would an alternative have?"

Google, Cleland testified, has too big an infrastructure - with a million servers copying every page of the Internet every day - for a would-be rival to take on. Smith said Google was "creating a brain that controls all the major networks."

Smith claimed Google and DoubleClick are the two largest competitors in non-search ads and that antitrust laws don't permit a dominant firm "to buy success by purchasing its largest competitors."

Drummond denied that Google and DoubleClick are competitors. According to Google, they're in different, complementary businesses and so their merger isn't anti-competitive.

Heck, according to Google, Google doesn't even serve up ads, which is a pretty big suspension of belief, sort of like the time years ago when Bill Gates went to Washington and claimed Microsoft wasn't a monopoly.

According to Google, DoubleClick provides the technology to deliver ads and statistics relating to the ads while Google sells them. DoubleClick is to Google, it says, what UPS and FedEx are to Amazon.

Smith called Drummond's argument "artificial, superficial and preposterous." DoubleClick, he said, is Google's "largest and most significant competitor."

Drummond also claimed that Google has made privacy a priority, a statement none of the privacy folks believes.

Despite Google's assurances that it would destroy consumer information, Smith said, "I don't believe Google is anonymizing anything." It's merely deleting what are essentially a couple of numbers in a phone number that can be easily reconstructed, a position supported by Rotenberg, who testified that greater data collection is now planned than originally proposed.

Unseen at the hearing was the AEI-Brooking Joint Center for Regulatory Studies, which has concluded that the Google-DoubleClick merger could reduce competition in online advertising.

Besides Washington - where yesterday no clear winner was declared - Google also has to deal with the European Commission, not to mention Canadian and Australian authorities.

More Stories By Search News Desk

SYS-CON Media's Search Developer's Journal (search.sys-con.com), is the first and only global publication to present the hottest timely topics on the merging search engine companies, search optimization and search engine marketing industry, and all related articles, feature and news stories for search technology professionals.

Comments (1) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
Google News Desk 09/30/07 11:23:29 AM EDT

Well, now we'll get to see just how powerful Microsoft really is. The test is whether it can stop Google from taking over DoubleClick and becoming, in Microsoft's words, the 'dominant pipeline for all forms of online advertising' as well as 'the largest database of online user data in the world.' The Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights held a webcast two-hour hearing Thursday afternoon on Google's proposed $3.1 billion acquisition of DoubleClick, the advertising company Google outbid Microsoft for.

@ThingsExpo Stories
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...