OFT Considering Probe Of Google Waze Acquisition
The competition watchdog opens a consultation which could lead to an official investigation
UK’s Office of Fair Trading (OFT) has launched a 40-day consultation “with interested parties” on whether it should investigate Google’s acquisition of Israeli navigation software developer Waze.
In June, the Federal Trade Commission (FTC) had already launched such an investigation in the US, with concerns the deal could stifle competition in a market that is already dominated by Google Maps.
Better late than never?
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.
Much like Google Maps, Waze makes its money through location-based advertising.
In June, Google agreed to buy the start-up for $1.1 billion. 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.
Now, the UK regulator wants the industry to decide whether it should take a closer look at the fourth largest acquisition in Google’s history.
The FTC had chosen to review the deal to establish 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.
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