Google may get clearance to buy AdMob after all.
Staff at the Federal Trade Commission was expected to recommend blocking Google’s $750 million buy of mobile advertising network AdMob, but instead has punted, a source close to the situation said.
In their report to the FTC commissioners, staff members said there were valid arguments to both approve or nix the merger — an unusual position for FTC staff to take.
Now, the five FTC commissioners are questioning Google to see if they can make an anti-trust case. The commissioners are expected to rule on the matter in about 10 days.
“This is really hanging in the balance,” the source said.
What may be working in Google’s favor is that Apple has unveiled a new mobile ad platform that shows there will be robust competition in the mobile-advertising market.
The argument against Google buying AdMob is that the Internet giant dominates the online search advertising market and should not be allowed to do the same in mobile advertising, which is part of the same overall market.
Google argues these are separate markets.
A tech banker familiar with Google’s plans said it wants to control all search markets, drive down the costs of Internet access and make money from the advertising.
Google already distributes the Android operating system for cellular phones for free.
After buying AdMob, Google’s next step could be buying a phone, wireless or Wi-Fi company, the banker said.
If the FTC blocks the deal, it will ask Google if it wants to abandon the merger or litigate. There is a high likelihood the company would litigate, the source said.
An FTC spokeswoman declined to comment.