Acquisition of DoubleClick, a significant player in the £18 billion online advertising business, by Google, got the approval of the European regulators on Tuesday. They had earlier raised complaints that the combination would allow Google to extend its Internet dominance. This approval comes only weeks after imposing a fine of 899 million euros on another technology company, Microsoft, in an antitrust case.

Google announced, shortly after, that it had closed the acquisition and said the integration of the two companies may result in some job cuts. Approval of the Google-DoubleClick deal could strengthen Microsoft’s argument that it should be allowed to buy Yahoo!, were it to succeed in its battle with that company, analysts said.

Jeff Chester, executive director of the Center for Digital Democracy in Washington, said, “E.U. and U.S. antitrust regulators have also set the stage for Microsoft’s goal of acquiring Yahoo, furthering more concentration of control in the new-media sector”.

Critics said the ruling could help create a “digital colossus” by allowing Google to strengthen its position in other kinds of online advertising, including display ads like banners, and television-like video spots, where it has had limited success.
The commission on Tuesday said the deal would not hurt competition because Google and DoubleClick occupy different parts of the market, and advertisers would be able to opt for alternatives.