Evidence continues to mount that the Google-DoubleClick merger presents serious anti-competitive concerns.
Let me share a series of antitrust developments over the last several days that cumulatively are very significant.
First, and most ominous, is that Yahoo, the weak #2 in the search market, which used to use Google's search engine, has been actively considering exiting the search business and outsourcing to #1 dominant Google or distant #3 Microsoft, because investors want the greatly expanded investment returns such a revenue-enhancing and cost cutting move would generate for shareholders.
Second, Online Media Daily picked up on a new study by investment firm William Blair Co. that “pegs the number of online advertisers globally at more than 500,000 and growing--with 90% of them currently running search campaigns with Google.”
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Given that DoubleClick claims 17 of the top 20, or 85% of the world’s largest web advertising sites, combining Google and DoubleClick will create one company that serves upwards of 90% of all advertisers globally, a global advertising network sevral times larger than any other competitor.
Third, according to Neilsen's NetRatings, Google has 71.6% share of the global search engine market, and as evidence of Google's growing market power/network effects (i.e benefiting disproportionately), Google grew its global audience 2.5 time faster than the growth in search usage overall. Third, I emphasize "global" market share because the Internet is the ultimate global market with extraordinary global scale/scope efficiencies and the least transactional "friction" of any global market.
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Moreover, the Australian Competition and Consumer Commission has launched an informal probe of the Google-DoubleClick merger per Reuters.
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That probe is in addition to the EU recently accelerating its process to investigate the Google-DoubleClick merger also per Reuters.
Fourth, PC World produced an interesting and ominous chart in its article: "Is Google too Big? what Google knows about you."
Bottomline: There is mounting evidence that the Google-DoubleClick merger presents serious anti-competitive problems. As I have said before: "the more you learn, the more concern..."
See www.googleopoly.net