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Google Could Face Challenge in Advertising Venture

April 10th, 2010 | No Comments | Posted in Marketing and Advertising, News

Search engine and digital corporate power house Google, Inc has recently been warned by the United States government that it may face regulation if it goes ahead with the proposed purchase of a mobile ads serving firm known as Ad Mob. The reports in the media recently have stated an unnamed person associated with the federal lawyers and say that the Federal Trade Commission of the US may get involved and attempt to file an anti trust law suit in response to the acquisition if Google continues to pursue it. The official, speaking on condition of anonymity, said that the pairing would be a real problem because it would cut deeply into online competition in the mobile ad serving sector since Ad Mob is currently a prime competitor for Google’s Adsense for Mobile program.

Since the ad industry juggernaut already places 96 per cent of its overall 2009 earnings of $23.7 to ad sales, this could cause some severe issues for the digital behemoth. This is not the first time that competitiveness issues have surfaced around the California based company, investigations in both the US and the European Union have sought to weigh whether or not they are acting in the best interest of the public, despite being a privately owned company. The FTC lawyers are reported to have already let the US Congress know of their intentions to challenge the merger and given full details of their concerns. The smart phone industry has been fueling rapid growth for advertisers who want to reach this emerging market and if the deal is some how broken up, Google would need to innovate in a new way to try and maintain its hold on the industry.