Consumer Watchdog today called on federal regulators to block Google's proposed $1 billion acquisition of Waze, developers of a mobile mapping application, on antitrust grounds.
The nonprofit, nonpartisan public interest group made the case against the deal in letters to both the Department of Justice and the Federal Trade Commission. Both agencies have the authority to scrutinize acquisitions for antitrust concerns. While the deal is above the threshold requiring approval, it is not yet clear which agency will handle it.
"Google already dominates the online mapping business with Google Maps. The Internet giant was able to muscle its way to dominance by unfairly favoring its own service ahead of such competitors as Mapquest in its online search results," wrote John M. Simpson Consumer Watchdog Privacy Project Director. "Now with the proposed Waze acquisition the Internet giant would remove the most viable competitor to Google Maps in the mobile space. Moreover, it will allow Google access to even more data about online activity in a way that will increase its dominant position on the Internet."
