Friday 14 February 2020

CMA clears Google-Looker merger unconditionally




CMA clears Google-Looker merger unconditionally



The Competition and Markets Authority has decided not to refer the completed acquisition by Google LLC of Looker Data Sciences, Inc (Looker) to a Phase 2 merger probe.

The parties overlap in the supply of business intelligence services but the CMA considered that they are not their closest competitors.

The CMA also investigated potential vertical concerns and examined in particular whether Google could leverage market power in online advertising into search analytics, for example by restricting access to Google-generated data.  It concluded that whilst Google might have the ability to do so, it would not have the incentive to act in this way.

The decision to clear the merger unconditionally is remarkable.  The CMA has concluded that Google has market power in the relevant markets, that it has the ability to foreclose competition through the integration of the relevant services, but that it would have no incentive to do so.  Only time will tell.



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