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European Union regulators cleared Google Inc.'s $3.1 billion bid for online ad tracker DoubleClick, saying the deal will not hurt competition for online ads.
Critics have complained the deal would give Google too much power.
But the European Commission said Tuesday it found no proof that Google and DoubleClick would be able to squeeze out competitors. That is because Microsoft, Yahoo and AOL provided ''credible'' alternatives for placing ads on Web sites.
EU Gives the Go Ahead for Google DoubleClick [nytimes.com]
That is because Microsoft, Yahoo and AOL provided ''credible'' alternatives for placing ads on Web sites."
Yes right. I spend a four-digit amount in EUR every month on Google Adwords. I have the same ads running on Yahoo and every month I get an email that I have not reached the minimum 25 EUR turnover. Yahoos and Microsofts market shares are so small in Germany you need a microscope to measure it.
The answer is no because if Yahoo or MS brought out an amazing new search engine and provided better referrals at a lower cost whilst providing the advertiser with more revenue then you could switch within 1 day.
Also there is nothing which prevents a new competitor entering the market (because the cost of switching is so low), all they have to do is build a better mouse trap and they will have marketshare overnight.
People often confuse the goal of monopoly law - it is not there to prevent companies having close to 100% marketshare, they want to make sure that any monopoly cannot affect fair trade.