• InformationWeek, Tuesday, September 25, 2007 10:30 AM

A Senate hearing on the proposed Google-DoubleClick deal could foreshadow more government scrutiny of the online search company and even imperil the entire targeted online-ad model. Thursday's hearing will focus at least as much on privacy issues as on the anti-competitive aspects of the acquisition. Senior vice president David Drummond, Google's chief legal officer, is expected to testify. Joining him will be Brad Smith, senior vice president and general counsel for Microsoft, which has been vocal in its opposition to the DoubleClick purchase.

Announced last April, the $3.1 billion agreement to purchase DoubleClick online ad-placement service represents the strongest evidence to date of Google's intentions, and ability, to dominate online advertising. The deal has raised antitrust concerns in the United States, where the Federal Trade Commission is scrutinizing the deal, as well as in the European Union and Australia.

The hearing comes at a time when Google has been linked in the press to various efforts to expand its role beyond that of an online search service and purveyor of targeted ads to controlling the distribution of online content and advertising. Besides a possible bid in the upcoming FCC auction of valuable spectrum in the 700 MHz band, Google also is said to be looking at investing in a new undersea fiber optic cable called Unity that's expected to be laid across the Pacific Ocean sea floor in the next two years.

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