Google, the dominant internet search engine, has offered to preserve some business practices at DoubleClick in a bid to win European antitrust approval for its proposed $3.1 billion (€2.2 billion) purchase of the company.
The European Commission has extended its review of the acquisition because of the offer, a spokeswoman said.
Google's competitors, including Yahoo and Microsoft, have expressed concerns that the combination would hurt competition in the $28.8 billion global online advertising market.
Google announced the proposed purchase of the New York-based online advertiser in April to bolster its sales of internet advertisements that include pictures and videos. The company faces additional scrutiny in the US, where consumer groups are seeking to delay the acquisition to determine whether it will threaten privacy.
"In response to third-party concerns, Google has committed to the European Commission that we will keep certain DoubleClick business practices unchanged," said Julia Holtz, Google's competition lawyer, in a statement.
The acquisition is "a good deal" for publishers, advertisers and users, she said.
Google, which employs almost 1,200 staff at a European operations centre in Dublin, generates revenue from selling text-based advertisements that appear next to search results.
DoubleClick's two main products help web publishers and companies manage online advertising. The software handles so-called display advertisements, which include graphics or animation.
"Combining Google's search business with DoubleClick's ad technology will strengthen Google's dominant position in Europe," said Andrew Cecil, head of public policy for Yahoo Europe. "The end result will be higher prices for internet publishers and advertisers and less choice for European consumers."
The commission will now issue a ruling by November 13th rather than the original October 26th deadline. It can approve the transaction or open a four-month extended review.
- (Bloomberg)
