FTC concerned about Google's proposed AdMob buy

The US Federal Trade Commission is understood to be preparing for an antitrust challenge against Internet giant Google's proposed purchase of mobile advertising firm AdMob, a media report says.

Attributing to people familiar with the matter, The Wall Street Journal said, "The FTC has assembled an internal litigation team to prepare for a possible effort to block the deal." The regulator has also sent letters to AdMob's competitors asking them to testify in sworn statements about the potential impact of the purchase, the report cited several people with knowledge of the process as saying.

However, the FTC has not made a final decision to try to halt the AdMob deal and its five commissioners have not yet voted on the issue. "Google lawyers continue to meet with the agency's staff to argue in favour of the acquisition and the two sides could yet come to an agreement that assuages the FTC and preserves the deal," the WSJ stated.

Google's $750-million agreement to purchase AdMob, which is a leading supplier of advertisements that run on mobile devices like iPhone, could allow the Internet major to extend its dominance into a crucial new technology sector. The report quoted a Google spokesman as saying, "while we're continuing to work with the FTC, there is overwhelming evidence that mobile advertising will remain competitive after this deal closes."