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The Times' Rorshach Geithner Story
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Sinking Animal Spirits
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Counter-cyclical Urban Policy
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Be Your Own Counterfeiter
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Being Tim Geithner
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Notes From a Press Conference Naif
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What Good is the News?
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Stressful Enough
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Not Regretting the Pound
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Introducing the New Ford Squeeze
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Non-Economic Questions of the Day
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The Stress Test Blind Alley
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Happy Hour
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Recovery Without Rebalancing
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The Shape of Your Recession
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Is Google-DoubleClick a Monopoly?
The US government is increasingly toothless when it comes to regulating monopolies, or preventing their formation. So Google doesn't have much to worry about from the Federal Trade Commission's inevitable decision to investigate its acqiusition of DoubleClick. The only time that mergers get blocked these days, it seems, is when there's ex ante legislation banning them, as in the Sirius-XM deal.
Should the US be worried about Google-DoubleClick? That's a very different question, and I think the answer is yes – although maybe not to the point of banning it altogether. The key monopoly here is the one on information about users' web-browsing habits: what they search for, what sites they visit, what ads they click on. That information is hugely valuable to Google, and gives it a serious competitive edge. And it's going to be very hard for any of Google's competitors to compete with it in terms of the quality of their databases of such information.
On the other hand, it's not clear that the DoubleClick aquisition greatly strengthens Google's hand, since, as Catherine Holahan reports, "DoubleClick has stressed that the Web surfing data belongs to its advertiser and publisher clients—and thus cannot be turned over to Google". So long as Google signs some kind of consent agreement with the FTC saying that it won't incorporate DoubleClick's web surfing data into its existing user-behavior database, it makes sense to allow this merger to happen.
