Google CEO Larry Page (Abacausa.com)
Google is back on the radar of federal regulators.
The Federal Trade Commission has opened a preliminary probe after, sources said, rivals complained about its display ad business.
The FTC, which earlier this year cleared Google of any wrongdoing in its search business, is now being asked to look at how the search giant sells display ads, sources familiar with the inquiry said.
The sources stressed that the FTC’s interest was prompted by Internet advertising rivals’ complaints and that the inquiry may not lead to a full-fledged probe.
Also, given the competitive landscape of display ads — with businesses like Facebook and Yahoo! taking large market shares alongside Google — it would be difficult to build a case against the Mountain View, Calif., company, according to antitrust lawyer David Balto.
Still, the FTC has become a fact of life for Internet-dominating Google as it spreads its business to all corners of the Web from mobile to desktop, search engines to social networks.
“This is an antitrust issue and it’s all about marketshare,” said one Washington insider.
The source said the FTC is looking at Google’s ad businesses like the DoubleClick Ad Exchange and AdSense.
Google has been on a display ad rocket since 2008, when it only controlled 2.9 percent of that Internet ad market.
Last year, Google was No. 1, with 15 percent of the $15 billion market, according to eMarketer. Facebook was right behind with 14.6 percent.
Ad technology firms like PubMatic are said to be the ones questioning Google’s sales tactics, a source said.
“They have to show Google makes advertisers purchase products they otherwise wouldn’t want to purchase and that Google is in effect raising the cost of those products,” Balto said.