In July 22nd the Official Journal of the European Union published the Summary of the Commission Decision declaring the concentration between Google and Double Click compatible with the common market and the functioning of the EEA Agreement. This Decision was accompanied by the positive opinion of the Advisory Committee on Mergers, and the Final report of the Hearing Officer.

On 21 September 2007, the Commission received a notification of a proposed concentration pursuant to Article 4 and following a referral pursuant to Article 4.5. of Council Regulation (EC) No 139/2004, ‘Merger Regulation’, by which the undertaking Google Inc., would acquire within the meaning of Article 3.1 b) of the Merger Regulation control of the whole of the undertaking DoubleClick Inc. by way of purchase of shares.

Upon examination of the notification, the Commission concluded that the notified operation raised serious doubts as to the compatibility of the notified acquisition with the common market and with the functioning of the EEA Agreement with regard to the market for online advertising. The Commission also found that the commitments proposed by the notifying party on 19 October 2007 were not sufficient to clearly rule out the serious doubts identified by the Commission during the phase I investigation. Accordingly, the Commission decided to initiate proceedings under Article 6.1 c) of the Merger Regulation on 13 November 2007.

On the basis of the additional evidence gathered during the phase II investigation, the Commission concluded that the proposed transaction would not significantly impede effective competition in the common market or a substantial part thereof and is therefore compatible with the common market and the EEA Agreement. Accordingly, no Statement of Objections was sent to the notifying party.

Profile of the Parties and Relevant Product Markets

• Google Inc. (Public, NASDAQ:GOOG) operates an Internet search engine and provides online advertising space on its own websites as well as on partner websites (affiliated to the Google ‘AdSense’ network). More recently, especially via the acquisition of YouTube, Google started to provide content. Google derives almost all of its revenues from online advertising. Google is active mainly in the provision of online advertising space. The widest possible relevant product market considered in the Decision is the overall market for online advertising.
• DoubleClick mainly sells ad serving, management and reporting technology worldwide to website publishers, advertisers and advertising agencies. It is also launching an intermediation (ad exchange) platform. DoubleClick is active in display ad serving. The market investigation has shown that display ad serving technology constitutes a separate market from ad serving technology for text ads.

After a Competitive Assessment that involved the position of the parties in the relevant markets, as well as the horizontals and non-horizontal effects of the merger, the Commission concluded that the proposed concentration will not give rise to competition concerns as a result of which effective competition would be significantly impeded in the Common Market or in a substantial part of it. Consequently, the Commission declared the transaction compatible with the Common Market and the EEA Agreement.