Archive notice: This article was originally published on October 15, 2007. Links and embedded videos are preserved as part of the historical record.
Yahoo has now spoken out publicly for the first time against Google’s takeover of the online advertising company Doubleclick. In a statement to the European Commission, the company explains that the acquisition would have a negative effect on competition in the online advertising market. The British Telegraph reports this. At Google’s own request, the Commission is currently examining compliance with EU competition guidelines. Yahoo fears that the takeover could drive up prices for online advertising and thereby hit the income of online publications that depend on advertising revenue, since Google could demand higher levies.
Doubleclick is so attractive to Google because it offers advertising customers technology that helps them manage their online campaigns. This software collects information about costs and the number of people reached. Together with Google’s online auction company Adsense, Doubleclick makes it difficult for competitors to keep up. Already now, 25 percent of the online advertising space in the European market is auctioned via Adsense. These auctions are used by the respective competitors to snatch the advertising space from under the rival’s nose.
At the end of the month, the European Commission will decide whether to initiate a three-month investigation into the takeover. With Doubleclick, Google could become similarly dominant in the advertising market as in the search-engine market. In Europe, 80 percent of the income from online search queries goes to Google.
