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The Russian Federal Antimonopoly Service has recently
blocked the acquisition by Google of Zao Begun, a
search-and-contextual-advertising company owned by Rambler Media, a Russian company
that maintains several websites, including a search engine.
The deal, valued at $160 million, was blocked by the FAS
because, according to its head Igor Artemyev, Google did not provide reliable
and sufficient information about those persons who can influence the company’s
economic operations; neither did they publish the full list of owners. Thus,
FAS was unable to calculate the possible consequences of the deal, and if it
would help or hurt competition. Google will have to file a new request for
approval, said Artemyev.
Google meanwhile expressed their dismay in a statement by
saying that they “are very disappointed to hear that FAS has come to this
decision, 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."
The deal, when it
eventually goes through, will bump Google’s claim on the Russian market from
its current meager 5%, to include the 20% that come with the Begun territory.
This will put it toe-to-toe with its biggest competitor, Yandex, which owns 64%
of the market right now.
All of this ado is secondary though, when we bring to mind
Google’s other trouble regarding
advertising deals, namely the ongoing review by the U.S. Department of Justice,
which has so far delayed by a month their advertising deal with Yahoo, which
would have the latter show the former’s ads.
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