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Apple buys Google time with Feds

By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
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By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
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May 12, 2010, 6:48 AM ET
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A two-week extension in the government’s investigation of the AdMob acquisition



Source: Apple Inc.

A decision due this week on whether to prevent Google (GOOG) from purchasing the AdMob advertising network has been postponed because of complications created by Apple’s (AAPL) aggressive foray into online advertising, according to a report in Wednesday’s
New York Times
.

Google, which derives 99% of its revenue from online ads, announced in November its intention to purchase AdMob, one of the world’s largest mobile ad networks, for $750 million.

The deal immediately raised antitrust concerns, and it was widely reported that the Federal Trade Commission was inclined to block it.

The Times quotes an unnamed person briefed on the FTC’s deliberations who said that the agency’s decision “would have been much easier without Apple and its new ad system and terms of service provisions.”

According to several reports, the FTC and the Department of Justice have begun initial inquiries into the restrictions Apple places on developers who want to write apps for its mobile devices — including prohibitions against using Adobe (ADBE) Flash on the iPhone or iPad.

See also:

  • Google-AdMob decision due next week
  • AdAge: Apple’s iAd is ‘double dipping’
  • Steve Jobs’ Flash manifesto
  • U.S. vs. Apple: Who would win?

[Follow Philip Elmer-DeWitt on Twitter @philiped]

About the Author
By Philip Elmer-DeWitt
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