By Tony Romm - 05/05/10 01:56 PM EDT
As concerns about Google's proposed purchase of AdMob seem to grow in number and intensity, the search giant on Tuesday sought to assure skeptics that its new mobile-phone advertising venture would actually boost industry competition.
Google's latest guarantee, penned in a blog post by Group Product Manager Paul Feng, arrives as the Federal Trade Commission is reportedly readying a legal team to challenge some of the elements of the company's proposed $750-million buy.
At issue is whether Google could come to dominate the burgeoning mobile advertisement market by leveraging its current success in the Web-based ad world.
However, Google stressed on Tuesday that its entrance into mobile advertising would actually improve competition, not stunt its growth, and it cited a series of industry leaders and analysts who confirmed that for the FTC over the past month.
The selected insider opinions -- which included news editorials, industry analyst Greg Sterling and app developer Wertago -- agreed that Google's new venture would not raise rates for other mobile advertisers and consequently force competitors out of the market.
But whether those assurances satisfy the deal's skeptics -- including members of Congress, some of whom only last week questioned the proposed merger on anti-trust grounds -- remains to be seen. Google's earlier claims that Apple's entry into the mobile ad market illustrated a competitive industry did not seem to deter criticism.
"With Google and AdMob facing strong competition every day from businesses like Apple, JumpTap, Millennial Media, Microsoft, inMobi, Greystripe, Mobclix and many more, we agree that there’s vibrant competition in this space," Feng concluded in his post.