FTC To Review Google’s Acquisition Of Waze

Google has confirmed it has become the target of yet another investigation by the US Federal Trade Commission (FTC), which is looking at the company’s recent acquisition of navigation software developer Waze.

Google bought Waze for $1.1 million (£831m) in June, but there are concerns that the deal could stifle competition in a market that is already dominated by Google Maps.

Anti-trust

Waze for Android and iOS is a free app that learns from users’ driving times and patterns to optimise routing and provide real-time traffic updates. It relies on crowdsourcing for map data and other information – drivers can report accidents, traffic jams, speed traps and police presence, as well as updating roads and landmarks.

At the moment the mobile app has almost 50 million users, and much like Google Maps, Waze makes its money through location-based advertising.

In June, Google agreed to buy the start-up for $1.1 million. Under the terms of the deal, Waze would keep its headquarters in Israel and remain relatively independent for the next three years. Meanwhile, Google would use technology developed by Waze to enhance its own navigation products.

According to the Wall Street Journal, even though this was fourth largest acquisition in Google’s history,Waze’s revenue wasn’t high enough to warrant an automatic investigation by the FTC. But the government agency can choose to review deals even after closing, if it thinks they will have a negative impact on competitiveness of the market.

Now, the FTC will look at whether Waze could have developed into a Google Maps competitor, and if it was bought by Google just to keep it from falling into the hands of rivals like Apple or Facebook – a motive suggested by several analysts at the time.

Earlier this year, another FTC investigation concluded that Google didn’t abuse its dominant position in the Web search market. In a separate inquiry, the government agency is currently looking at Google’s advertising business.

Are you a Google expert? Take our quiz!

Max Smolaks

Max 'Beast from the East' Smolaks covers open source, public sector, startups and technology of the future at TechWeekEurope. If you find him looking lost on the streets of London, feed him coffee and sugar.

Recent Posts

UK’s CMA Readies Cloud Sector “Behavioural” Remedies – Report

Targetting AWS, Microsoft? British competition regulator soon to announce “behavioural” remedies for cloud sector

7 hours ago

Former Policy Boss At X Nick Pickles, Joins Sam Altman Venture

Move to Elon Musk rival. Former senior executive at X joins Sam Altman's venture formerly…

9 hours ago

Bitcoin Rises Above $96,000 Amid Trump Optimism

Bitcoin price rises towards $100,000, amid investor optimism of friendlier US regulatory landscape under Donald…

11 hours ago

FTX Co-Founder Gary Wang Spared Prison

Judge Kaplan praises former FTX CTO Gary Wang for his co-operation against Sam Bankman-Fried during…

11 hours ago