Two Consumer groups protesting Google’s recent move to acquire the mobile advertising company AdMob have said that this should not be allowed since it can potentially diminish competition.
According to a report published on BusinessWeek, the Consumer groups have said
“Without vigorous competition and strong privacy guarantees this vital and growing segment of the online economy will be stifled”
What do we make of this? Will the AdMob acquisition indeed be thwarted. From the current market conditions, it is pretty unlikely that FCC would heed to the claims by Consumer groups. Google and AdMob together constitute just over 40% of the mobile advertising market (according to an IDC analyst). In that condition, this does not really bother competition to a great extent.
As a matter of fact, the mobile advertising market is currently pretty much fragmented and we do need a bit of consolidation as this for the mobile advertising market to move to the next level.
We would like to hear your opinion on this? Do you see the Consumer groups claims hold truth? Please tell in the comments.
[via Business Week]