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In Brussels, Belgium today the European Commission said that is will extend until November 13, 2007 its decision on whether to  give approval to Internet search leader Google's $3.1 billion bid for online advertising tracker DoubleClick, postponing a decision which had been expected from regulators by this Friday's October 26 deadline. The EU will use the additional time to review and test changes proposed by Google to appease the commission's antitrust concerns, according to a spokeswoman for the commission. While not giving details, Google lawyer Julie Holtz has said that the company plans to keep a number of DoubleClick's business practices in place. "We believe that the deal is good for publishers, advertisers, and users -- and we trust that the Commission will reach the same conclusion and clear the transaction," Holtz told news agency Reuters. "Today's advertising market is highly competitive and innovative, and it is evolving very quickly," Holtz said. The EU will decide whether to approve Google's planned acquisition of DoubleClick or to open an in-depth investigation which could last as long as four additional months. An extension of ten working days is standard policy for the commission when the companies involved have put forth changes in response to questions raised during the inquiry, or when certain authorities have asked to exercise jurisdiction in the case. The Financial News has reported in a recent article that its sources indicate the announced extension is only a precursor to a full review by the commission. Latest Hurdle to Google's Planned Expansion Privacy concerns over the planned acquisition have also been voiced by several watchdog groups, however it appears that the EU antitrust regulators may not scrutinize these as closely as the antitrust concerns the deal has raised. Rivals Microsoft and Yahoo have both opposed the Google deal to purchase DoubleClick citing both data privacy and anti-competitive concerns. Scrutiny Seen from Start Although DoubleClick does not sell advertising, it is one of the top firms specializing in placing and tracking online ads. Its technology allows clients to place targeted ads on Web pages and has been a favorite of smaller companies. Both video and graphical ads are used in the DoubleClick system, and the privately held New York-based company offers both types to roughly 2,000 clients including advertisers, Web publishers, and advertising agencies. Rivals' Deals Already Done Earlier this year two of Google's rivals purchased companies in the online advertising industry when Yahoo purchased Right Media Inc. for $680 million and Microsoft agreed to purchase aQuantive Inc., the Internet's largest interactive ad agency, for $6 billion. Additional deals have been make in the online advertising industry, including Yahoo's $300 million purchase of BlueLithium and Time Warner AOL's acquisition of Tacoda, all companies specializing in technology helping advertisers target ads on the Web. Google's rivals Microsoft and Yahoo have both said that were the deal between DoubleClick and Google allowed to take place, opportunities for fair competition in the rapidly expanding Internet advertising industry would suffer damage.  Andrew Cecil, Yahoo's head of European public policy, spoke about negative effects his company feel's would be experienced should the DoubleClick acquisition take place. "The end result will be higher prices for Internet publishers and advertisers and less choice for European consumers," Cecil said last week. A similar refrain was voiced last month at a U.S. Senate hearing, where Microsoft general counsel Brad Smith, in urging the Senate to stop the deal, warned of a world in which Google has "sole control over the largest database of user information the world has ever known." In April Microsoft tried to acquire DoubleClick itself, however Google won with a higher bid. Still Facing Inquiry in U.S. The proposed deal still faces a review in the U.S. by the Federal Trade Commission, where industry experts see it having a good chance for approval. The U.S. and EU commissions are working with one another as they review the proposed acquisition. The pending acquisition has been a topic of discussion since it was first announced, including Internet companies that deal with both online advertising and Google's core search market such as the popular WebmasterWorld discussion forum. EU Intensifies Focus on Google's DoubleClick Purchase If Google receives approval from both EU and U.S. regulators, the acquisition of DoubleClick would help the company by expanding its reach beyond core services and into an area where it has already showed success. With the decision on hold until November 13th at the earliest, and the possibility of an even lengthier review by the European Commission looming, it might be some time before Google is able to close the deal they pursued in order to beat their rivals to the punch. Meanwhile, Microsoft and Yahoo are forging ahead with the deals they have struck in the online advertising market.  Related Links:
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8:45 pm on Oct. 22, 2007 (utc 0)