Russia blocks Google online advertising acquisition

Russian regulators will not let Google buy a local online advertising company, halting a $140 million deal agreed to in July.
  • (IDG News Service)
  • — 27 October, 2008 08:56

Russian regulators will not let Google buy a local online advertising company, halting a $140 million deal agreed to in July.

Techworld Australia: 10 ways to improve your PPC marketing strategy

Google planned to acquire Zao Begun, which has a search and contextual video and text advertising business. Begun is owned by Rambler Media, a Russian company that own various Web sites and runs a search engine.

Google said it is reviewing the decision of Russia's Federal Antimonopoly Service (FAS) and hasn't decided how to react.

"We are very disappointed to hear that FAS has come to this decision," Google said in a statement. "We strongly believe that this acquisition will enable us to significantly improve opportunities for Russian users, advertisers and publishers as well as the entire industry."

Google's plans to grow its online advertising business, which comprises nearly all of the company's revenue, has run into other obstacles with regulators.

The U.S. Department of Justice is investigating a plan for Yahoo to show Google search ads. That deal formed as Yahoo was under intense pressure earlier this year as Microsoft tried to acquire the company.

Yahoo and Google planned to start the program this month, but it has been delayed pending the DOJ review. Critics say it could drive up the costs of advertising and also gives the two companies too much control over the online advertising market. Google has said ads are purchased by auction, and neither company sets prices.

The rejection of the deal in Russia underscores the difficulty Google is having in some markets. While it dominates search in Western countries, Google faces strong competition from local search engines in places such as South Korea, China and Russia.

Google picked a strong partner in Russia: Begun runs a network with 40,000 advertisers covering 143,000 Russian-language Web sites. When the deal was announced, Rambler also signed an additional agreement to use Google's AdSense technology on its main portal.

Efforts to reach Rambler Media were unsuccessful.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Topics: google advertising
Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Compare & Save

Deals powered by WhistleOut
WhistleOut

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?