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Google Offers Remedies to Win EU DoubleClick Backing (Update3)

By Matthew Newman

Oct. 22 (Bloomberg) -- Google Inc., owner of the world's most popular search engine, offered to preserve some business practices at DoubleClick Inc. in a bid to win antitrust approval for its proposed $3.1 billion purchase of the company.

The European Commission, the 27-nation EU's antitrust regulator in Brussels, extended its review of the acquisition because of the offer, a spokeswoman said. Google's competitors including Yahoo! Inc. and Microsoft Corp. have expressed concerns that the combination would hurt competition in the $28.8 billion global online advertising market.

Google announced the proposed purchase of the New York-based online advertiser in April to bolster its sales of Internet ads that include pictures and videos. The company faces additional scrutiny in the U.S., where consumer groups are seeking to delay the acquisition to determine whether it will threaten privacy.

``In response to third-party concerns, Google has committed to the European Commission that we will keep certain DoubleClick business practices unchanged,'' Julia Holtz, Google's London- based competition lawyer, said in an e-mailed statement. The acquisition is ``a good deal'' for publishers, advertisers and users, she said.

Google, based in Mountain View, California, generates revenue from selling text-based ads that appear next to search results. DoubleClick's two main products help Web publishers and companies manage online advertising. The software handles so- called display ads, which include graphics or animation.

Google Competitors

``Combining Google's search business with DoubleClick's ad technology will strengthen Google's dominant position in Europe,'' Andrew Cecil, head of public policy for Yahoo! Europe, said in an e-mailed statement today. ``The end result will be higher prices for Internet publishers and advertisers and less choice for European consumers.''

The commission will issue a ruling by Nov. 13 rather than the original Oct. 26 deadline, according to an EU statement today. The commission can approve the transaction or open a four- month extended review.

To contact the reporter on this story: Matthew Newman in Brussels at Mnewman6@bloomberg.net.

Last Updated: October 22, 2007 09:48 EDT

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