Google's Deal for AdMob Faces Opposition - TheStreet

MOUNTAIN VIEW, Calif. (

TheStreet

) -- Two consumer groups reportedly have approached the Federal Trade Commission asking it to block

Google's

(GOOG) - Get Report

proposed $750 million acquisition of

mobile-advertising firm AdMob.

The groups allege the deal, the third largest in Google's history, would provide "significant amounts of data for tracking, profiling and targeting U.S. mobile consumers" and will stifle competition to the detriment of consumers, the

Wall Street Journal

reports.

"Consumers will face higher prices, less innovation and fewer choices," said John M. Simpson, a consumer advocate at Consumer Watchdog. "The FTC should conduct the appropriate investigation, block the proposed Google/AdMob deal, and also address the privacy issues."

Google spokesman Adam Kovacevich denied the group's contention, telling the

Journal

there were more than a dozen mobile-advertising networks which makes it difficult to estimate market share as none of the companies detail mobile-ad revenue.

He added that a number of peer companies, including

Microsoft

(MSFT) - Get Report

and

Yahoo!

(YHOO)

had made similar acquisitions in the past two years.

"We're confident that the FTC will conclude that the rapidly growing mobile advertising space will remain highly competitive after this deal closes," Kovacevich told the

Journal

.

The other group that opposes the deal is the Center for Digital Democracy.

The groups' request to the FTC follows news last week that the FTC was taking a closer look at the acquisition, seeking more information from Google about the deal.