Google wins antitrust OK to buy DoubleClick

By Diane Bartz

WASHINGTON (Reuters) - The Federal Trade Commission on Thursday approved Google's (GOOG.O: Quote, Profile, Research, Stock Buzz) $3.1 billion purchase of advertising rival DoubleClick, saying the deal would not substantially lessen competition.

The deal, which combines Google's dominance in pay-per-click Internet advertising with DoubleClick's market-leading position in flashier display ads, is also being scrutinized by European antitrust officials.

In a 4-1 vote, the FTC decided to end its eight-month investigation of the transaction. Critics of the combination, first announced in April, had said it could give Google too much control over online advertising.

The commission's majority wrote in a statement: "After carefully reviewing the evidence, we have concluded that Google's proposed acquisition of DoubleClick is unlikely to substantially lessen competition."

The merger is part of a rapid consolidation within the Internet advertising industry.

In recent months, Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) bought aQuantive for $6 billion, Yahoo Inc (YHOO.O: Quote, Profile, Research, Stock Buzz) bought BlueLithium for $300 million and Time Warner Inc's (TWX.N: Quote, Profile, Research, Stock Buzz) AOL unit bought Tacoda.

But the DoubleClick deal was also controversial for its privacy aspects, although the U.S. competition agency said that issue was not relevant to an antitrust review.

The deal must still be approved by the European Commission, which opened a four-month review in mid-November. It has already been approved by Australia and Brazil.