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European Digital Rights Initiative (EDRI) is supporting the letter Privacy International (PI) sent on 5 November 2007 asking the head of the European Commission DG Competition, Commissioner Kroes, to take the merger of Google-Doubleclick to the next phase. PI argues that the merger could have serious implications for privacy innovation in advertising.
The letter explains the problems that the merger could bring to the online advertising market: "Google's purchase of Doubleclick is particularly worrying because it is a significant consolidation in this domain and we worry that this very competition to provide high-quality privacy practices will dissipate. Google's dominant position in the search marketplace will be compounded by Doubleclick's dominant position in online profiling, leading to a potentially abusive situation for the protection of privacy. If the merger is approved, then Google's dominant service will transform radically from one with a search advertising function into one that collects both searches and browsing habits of users. "
PI showed how the decision could influence privacy of the Internet users if the merger is approved : "Privacy innovation could suffer under the merger as the two largest online databases come together. Other companies will have to compete against this massive entity and we worry it will lead to a race to the bottom for privacy protection. (...) Little is actually known about how all these companies protect their customers' data, even though they must do so in accordance with European privacy laws. (...)We know little about how firms make use of this data. Google promises that it does not yet create online user profiles, but it is purchasing a firm that is renowned for the depth and extent of its online user profiles. We need strong and enforceable assurances that profiles will not be developed and enhanced through this merger."
BEUC, the Consumer's Organization, as well as the Data Protection Commissioner of the German state of Shleswig-Holstein, Thilo Weichert, have publicly opposed the Google-Doubleclick deal. However, Commissioner Kroes announced on 15 October: "We are looking at the influence on competition and that's it." The new deadline for the enquiry has been set for 13 November 2007.
PI Comments on Google-Doubleclick Merger to the European Commission
(5.11.2007)
http://www.privacyinternational.org/article.shtml?cmd³³0³=x-347-558328
EU review of Google bid won't cover privacy issue (15.10.2007)
http://business.guardian.co.uk/story/0,,2191128,00.html
BEUC expresses concern over DoubleClick acquisition by Google (18.07.2007)
http://www.edri.org/edrigram/number5.14/beuc-doubleclick-google