Please discuss the acquisition by Google of Admob, and the criticism of the FTC’s approval of the acquisition by those who believe it is in violation of the anti-trust laws.  Please base your...

  • Please discuss the acquisition by Google of Admob, and the criticism of the FTC’s approval of the acquisition by those who believe it is in violation of the anti-trust laws.  Please base your arguments on the information contained in your text, the lectures, and The New York Times’s article, “Google, Sure It’s Big, But Is That Bad?”

 

http://www.nytimes.com/2010/05/23/technology/23goog.html?pagewanted=all&_r=0

Cummins, Suzanne: Black, White and Gray: Law and Ethics in Business, DZ Publishing

Expert Answers
thetall eNotes educator| Certified Educator

AdMob was and still is a mobile advertising company that operated for three years before it was acquired by Google for $750 million. The company is now a subsidiary of the larger Google family of companies.

Google’s acquisition of AdMob was approved by the Federal Trade Commission against criticisms by those viewing Google’s move to be against antitrust laws. The critics argued that Google’s agenda was in bad faith because they have been systematically eliminating any form of emerging competition. They further suggested that the company is positioning itself as a monopoly in the internet sphere, posing a risk to the free and open online marketplace.

According to the article published in the NYTimes, Google seems to favor itself to the detriment of other online businesses. The company’s search engine runs on a tightly guarded algorithm that can be tweaked by administrators with damaging impacts on other businesses. The company’s power and their continued acquisition of companies like AdMob are generating major criticism, which flies against their creed “Don’t be evil”. The situation suggests that their continued growth and recent moves are threatening free competition in the online sphere.