Welcome!

Cognitive Computing Authors: Pat Romanski, Yeshim Deniz, Liz McMillan, Elizabeth White, Jason Bloomberg

Related Topics: Cognitive Computing

Cognitive Computing : 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)

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.


IoT & Smart Cities Stories
The platform combines the strengths of Singtel's extensive, intelligent network capabilities with Microsoft's cloud expertise to create a unique solution that sets new standards for IoT applications," said Mr Diomedes Kastanis, Head of IoT at Singtel. "Our solution provides speed, transparency and flexibility, paving the way for a more pervasive use of IoT to accelerate enterprises' digitalisation efforts. AI-powered intelligent connectivity over Microsoft Azure will be the fastest connected pat...
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Druva is the global leader in Cloud Data Protection and Management, delivering the industry's first data management-as-a-service solution that aggregates data from endpoints, servers and cloud applications and leverages the public cloud to offer a single pane of glass to enable data protection, governance and intelligence-dramatically increasing the availability and visibility of business critical information, while reducing the risk, cost and complexity of managing and protecting it. Druva's...
BMC has unmatched experience in IT management, supporting 92 of the Forbes Global 100, and earning recognition as an ITSM Gartner Magic Quadrant Leader for five years running. Our solutions offer speed, agility, and efficiency to tackle business challenges in the areas of service management, automation, operations, and the mainframe.
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, compared the Jevons Paradox to modern-day enterprise IT, examin...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DSR is a supplier of project management, consultancy services and IT solutions that increase effectiveness of a company's operations in the production sector. The company combines in-depth knowledge of international companies with expert knowledge utilising IT tools that support manufacturing and distribution processes. DSR ensures optimization and integration of internal processes which is necessary for companies to grow rapidly. The rapid growth is possible thanks, to specialized services an...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...