EU Google/DoubleClick Merger Approval a Good Sign for Comity

WASHINGTON, March 11 /PRNewswire-USNewswire/ -- The Washington Legal Foundation (WLF) today noted that the unconditional approval of Google's $3.1 billion purchase of online advertiser DoubleClick by the European Union Competition Commission is an important development for those concerned about international comity on antitrust matters.

The United States Federal Trade Commission (FTC) approved the merger in late December 2007 in a 4-1 vote of the Commissioners, and did so without attaching conditions. Some commentators expected the Google-DoubleClick merger to face greater obstacles in Europe, or have conditions imposed upon it, due to the dominance each entity enjoyed in its respective market in EU member countries. Google currently holds about a 65% share of the market in the U.S. for search queries; in Europe, their share is reportedly over 85%. Privacy advocates, who enjoy substantial political and cultural power in Europe, strongly expressed their concerns to the EU Competition Commission as it studied the merger.

"Europe's approval of the Google-DoubleClick merger is a promising signal that greater 'comity' -- the respect nations accord to the laws and interests of other nations -- is occurring between the U.S. and the EU on antitrust matters," noted Glenn G. Lammi, Chief Counsel of Washington Legal Foundation's Legal Studies Division. Since Europe's rejection of the General Electric and Honeywell merger in 2001 -- a combination of U.S. companies that the U.S. Department of Justice had approved -- antitrust officials on both sides of the Atlantic have worked to promote cooperation and comity among competition enforcement officials, especially in merger review. A May 25, 2007 WLF LEGAL BACKGROUNDER by former DOJ Antitrust Division official William Kolasky, describes these efforts and their successes. The paper is available at http://www.wlf.org/upload/05-25-07kolasky.pdf.

Given the large market shares of the combining entities, as well as the privacy concerns voiced, Europe's decision to join the U.S. FTC in approving the merger bodes well for future mergers, especially those involving online commerce. "One would hope that U.S. and EU antitrust officials will remain in accord on how they review the competition concerns raised in mergers," Lammi said. He added, "certainly, mergers which provide competition for the new Google-DoubleClick combination, such as that being discussed between Microsoft and Yahoo, will offer interesting further opportunities to apply the principle of international comity."

Washington Legal Foundation, a national, non-profit public interest law and policy center, has opposed government abuse of the legal system for 30 years. WLF's Litigation Department and Legal Studies Division have played an integral role in explaining the pitfalls of unreasonable government litigation and regulatory enforcement to policy makers and the public.