Google Inc.’s $400 million acquisition of Admeld Inc. was approved by the U.S. Justice Department after regulators found competition in the online display advertising industry ensures the purchase won’t harm consumers.
The department said today its investigation of the deal found Web publishers use multiple display advertising platforms and move business among them in response to price changes or the quality of ad placements.
“This use of multiple display advertising platforms, commonly called ‘multihoming,’ lessens the risks that the market will tip to a single dominant platform,” the department said in a statement.
The acquisition of AdMeld will strengthen Google’s position in online display advertising, the segment of the Internet ad market that’s outpacing others, according to Emarketer Inc., a New York-based digital research firm.
AdMeld offers technology services to Internet publishers that help them boost revenue by managing display ads from hundreds of sources, including ad networks. Customers of the New York-based company, founded in 2007, include News Corp.’s Fox News and the Weather Channel.
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