Google's AdMob purchase faces growing opposition

The FTC could block Google's acquisition of AdMob

Google's $750m (£491m) acquisition of AdMob looks increasingly likely to be challenged by the US Federal Trade Commission (FTC).

A Bloomberg report today, which cited three people familiar with the matter, said that FTC staff have urged the regulators overseeing the acquisition to file an anti-trust suit that will challenge the deal.

The FTC staff are concerned that the purchase will reduce competition in the market for mobile phone advertising, according to the report. Google's purchase of AdMob would create the largest mobile phone advertising company in the world.

Congressman John Barrow of Georgia wrote an open letter on Friday, which was signed by Republicans and Democrats, raising a number of questions that about the purchase.

The letter was addressed to House Energy and Commerce Committee chairman Henry Waxman, and asked him to have the FTC answer the questions before the Committee.

The Committee registered its concern over the deal with the FTC in March, arguing that it would affect competition in mobile advertising and could give Google too much control over personal information.

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

Last month, reports said that the FTC was assembling a legal team to challenge the deal, and was contacting competitors about possibly testifying on anti-trust concerns.

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.