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Google/AdMob merger comes under fire from consumer groups

Stuart Dredge
Google/AdMob merger comes under fire from consumer groups

Letter asks FTC to block the acquisition on competition grounds.

Two consumer groups have written to the US Federal Trade Commission (FTC) asking it to block Google's planned acquisition of mobile advertising firm AdMob.

In the letter, Consumer Watchdog and the Center for Digital Democracy (CDD) claim that the merger "would substantially lessen competition in the increasingly important mobile advertising market", while suggesting that it is "harmful to consumers, advertisers and application developers".

The letter also questions the privacy concerns around a combined Google/AdMob, and suggests that any deal should only be approved if there are strict privacy guarantees.

The consumer groups are also concerned about Google's expected launch of its own-branded Android handset early next year - the Nexus One.

"Data about competing smartphone users and applications, gathered through the Google/AdMob advertising network, could give Google information about its competitors that would be advantageous in marketing its new smartphone," claims the letter.

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The FTC has yet to announce its stance on the planned acquisition, but the letter is a good pointer to some of the key issues being cited by consumer groups - but also AdMob's rivals.

Tags: google , admob