FTC may challenge Google's AdMob buy

The Federal Trade Commission may block Google's purcase of AdMob

Google's bid to acquire mobile advertising specialist AdMob may be in trouble, after reports that the US Federal Trade Commission (FTC) is considering blocking the merger.

A report in The Wall Street Journal citing internal sources said that the FTC is assembling a legal team to challenge the deal, and is contacting competitors about possibly testifying on anti-trust concerns.

Google's efforts to acquire AdMob ran into trouble late last year when a consumer advocacy group lobbied the FTC to begin an investigation of the deal.

Opponents of the merger have claimed that Google would be in a position to use the customer information from its web services for targeted ads based on what would otherwise be considered private information.

The deal has also been opposed on the ground that Google would gain an unfair advantage in the market.

Google announced the acquisition in November as part of a buying spree that went on to include On2 Technologies in February and Episodic in April.

The AdMob deal was also cited as a factor in Apple's purchase of mobile advertising firm Quattro Wireless.