Google

Google gets approval from European regulators to buy DoubleClick.

European regulators have approved Google's $3.1 billion purchase of online ad company, DoubleClick, despite complaints from Microsoft.

Microsoft argues that Google's DoubleClick purchase will give the search engine company too much power in online advertising, however, the European Commission said there is enough competition in the market.

"The Commission found that the merged entity would not have the ability to engage in strategies aimed at marginalizing Google's competitors, mainly because of the presence of credible ad-serving alternatives to which customers can switch, in particular vertically integrated companies such as Microsoft, Yahoo and AOL," the commission's competition directorate said.

Following the news from the EU, Google shares are up about 15 percent.

While Google is the dominant player in targeted text ads that are linked to results on its search engine and delivered to other websites, DoubleClick is a leading provider of technology to deliver large display ads to websites and tracks who views them. DoubleClick is based out of New York.

"With DoubleClick, Google now has the leading display ad platform, which will enable us to rapidly bring to market advances in technology and infrastructure that will dramatically improve the effectiveness, measurability and performance of digital media for publishers, advertisers and agencies, while improving the relevance of advertising for users," Google Chief Executive Eric Schmidt said.

DoubleClick is the largest independent supplier of graphical ads such as online banners that major advertisers prefer for online corporate brand marketing campaigns.

The ad company has 14 data centers worldwide managing online ad traffic for its customers, both graphical and video.

Since April 2007, the DoubleClick has run an advertising exchange to connect online ad buyers and sellers. Hundreds of ad networks exist including companies such as Advertising.com, a unit of Time Warner Inc's AOL division, and ValueClick Inc.