EU to probe Google/DoubleClick plan

By David Lawsky

BRUSSELS (Reuters) - The European Commission opened a four-month, in-depth review on Tuesday of Google Inc's plans to buy rival DoubleClick for $3.1 billion.

"The Commission's initial market investigation indicated that the proposed merger would raise competition concerns in the markets for intermediation and ad serving in online advertising," the European Union's top competition regulator said in a statement, confirming what a source familiar with the situation had earlier told Reuters.

The Commission has 90 working days, until April 2, to take a final decision on whether the proposed transaction would significantly impede effective competition.

"The decision to open an in-depth inquiry does not prejudge the final result of the investigation," it said.

Google's chief executive, Eric Schmidt, said in a statement: "We are obviously disappointed by the European Commission's decision to extend its review of our acquisition of DoubleClick."

Schmidt said his company wants to avoid "further delays that might put us at a disadvantage in competing fully against Microsoft, Yahoo, AOL and others", who have already purchased online advertising companies.

Google, which uses consumer queries to choose advertisements which appear on web surfers' screens, wants to buy DoubleClick to increase its clout in tailoring advertisements to consumer activities.

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