FTC Conflict in Google-DoubleClick Deal?

Two consumer advocacy groups have asked FCC chair Deborah Platt Majoras to recuse herself from investigating the Google-DoubleClick merger.

The Center for Digital Democracy and the Electronic Privacy Information Center have filed a petition (PDF) with the Federal Trade Commission asking that FCC chairman Deborah Platt Majoras recuse herself from investigating the pending merger between Internet giant Google and online advertising and tracking firm DoubleClick. The reason? Majoras’s husband is an antitrust lawyer for the international law firm Jones Day, which has been retained by DoubleClick to advise on competition and antitrust laws and regulations related to the proposed merger. Majoras herself was also formerly a partner at Jones Day, and the petition claims she has previously recused herself from reviews when one of the parties was counseled by the firm.

Google announced its plans to buy online ad firm DoubleClick back in April 2007 for some $3.1 billion. The proposed merger is being heavily scrutinized by U.S. and European regulators to ensure it doesn’t violate antitrust and competition laws.

An FTC public affairs officer said that the FTC is reviewing the petition, and that a response could be issued shortly. According to the spokesperson, the FTC has only just learned Jones Day was representing DoubleClick, but that the involvement appeared limited to the European Commission’s investigation of the acquisition, rather than the FTC’s investigation. To date, Jones Day has not appeared before the FTC.

The consumer advocacy groups are questioning the FTC claims that it was unaware of Jones Day’s involvement with DoubleClick, and say they are planning a Freedom of Information Act request for records related to Jones Day’s involvement with the acquisition.

FTC commissioner Adam Kovacic is also married to a Jones Day partner, but petition from CDD and EPIC does not seek his recusal, focusing instead on Majoras in her role as commission chair.