CIPPIC Joins the List of Challengers to Google's Acquisition of DoubleClick

The Canadian Internet Policy and Public Interest Clinic (CIPPIC) has asked the Canadian Competition Bureau to look into Google Inc's (Google) proposed acquisition of DoubleClick Inc (DoubleClick). Similar requests have been brought by other public interest groups before the US Federal Trade Commission (FTC) and the European Commission (For a discussion of the complaints brought before the FTC, seen earlier article in E-TIPS®, "Microsoft, AT&T, and Privacy Watchdogs Call for FTC Review of Google-DoubleClick Deal", Vol 5, No 21, April 25, 2007). Under the Competition Act, the Competition Bureau asserts an "˜effects' jurisdiction when reviewing potential mergers. For example, the Competition Bureau may review any merger that affects the Canadian marketplace, including mergers between two foreign companies. CIPPIC argues that although both Google and DoubleClick are headquartered in the US, their businesses take place on the borderless Internet, with their services competing in the Canadian marketplace. It further claims that if the acquisition is allowed it will substantially lessen competition in the targeted online advertising industry, it will decrease Google's incentives to compete on non-price service aspects, including privacy policies and it will create barriers to market entry. CIPPIC's challenge of the merger, like that brought before the FTC, is partially based on the merger's potential effect on consumer privacy, and it will be interesting to see how this factor plays out in the Competitions Bureau's disposition of the matter. For the CIPPIC application, see: http://tinyurl.com/2m8ew8 For commentary on the application, see: http://news.com.com/8301-10784_3-9754200-7.html Summary by: Michael Migus