Google involved in ‘killer acquisition’ to eliminate potential competition?

New Delhi: The U.S. Department of Justice has accused Google of engaging in a "killer acquisition" through its purchase of ad technology provider AdMeld in 2011. The government alleges that Google acquired AdMeld to eliminate a potential competitor and maintain its dominance in the online advertising market.

This acquisition followed Google's earlier purchases of DoubleClick and Invite Media, solidifying its position as a major player in the ad-tech space. 

Internal documents revealed that Google initially underestimated the importance of yield management tools like AdMeld but later recognized their value in optimising ad pricing. 

Neal Mohan, then a key figure in Google's display ad division, played a pivotal role in the decision to acquire AdMeld. He acknowledged that Google had missed an opportunity to acquire a leading yield manager and emphasised the need to prevent further disruption from competitors.

While Google argued that AdMeld was a necessary complement to its advertising exchange, the government contends that the acquisition was aimed at neutralizing competition. The high price paid for AdMeld, exceeding its estimated value, further supports this claim.