Google's AdMob deal may be blocked by FTC, report says

The Federal Trade Commission may be preparing to challenge Google's planned acquisition of AdMob on antitrust concerns, a news report said Tuesday.

The FTC has built a litigation team as part of a potential bid to block the purchase of the mobile advertising provider, The Wall Street Journal said, citing people familiar with the matter. The FTC has also told Congress about its concerns and asked several AdMob rivals to testify about the effects of the proposed acquisition, the report said.

The FTC has not already decided to try to block the deal and Google lawyers could still reach an agreement with the agency to protect the deal, the report said.

Google has said it does not see any regulatory issues with the acquisition and argued that the mobile ad space is highly competitive.

AdMob provides mobile display and in-application ads that Google has said would complement its own focus on mobile search ads. AdMob ads appear on devices including the iPhone and phones with Google's Android operating system.

At least two consumer groups have urged the FTC to block Google's $750 million purchase of AdMob, which the company announced late last year.

Copyright © 2010 IDG Communications, Inc.

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