US federal authorities probe Google-Waze deal

By BLOOMBERG, JPOST.COM STAFF
June 23, 2013 16:58

NYT reports the FTC to look into possible anti-trust issues in deal; Google may have to re-sell company.

1 minute read.



Waze traffic software

Waze 521. (photo credit: Marc Israel Sellem)

Google Inc. (GOOG), owner of the world’s largest search engine, confirmed it has been contacted by the US Federal Trade Commission regarding the acquisition of mapping-application Waze. According to a New York Post article, the FTC will look into possible anti-trust issues in the deal.

The company wouldn’t comment on an investigation, said Niki Fenwick, a spokeswoman. Google said earlier this month it was buying Waze in a deal that gave it new tools for helping users navigate traffic with smartphones.

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The Post claimed that if the FTC concludes that Google must divest itself of Waze, Google may have to take the potential loss in re-selling the company.

Google is undergoing scrutiny from regulators around the world as it expands its product lineup and moves into new areas such as mobile technology. The company underwent regulatory approval by the US and other countries for its $12.4 billion acquisition of handset-maker Motorola Mobility, which became part of Google last year.

The Waze deal was valued at about $1.1 billion, a person familiar with the matter said earlier this month. Google didn’t disclose terms in a blog post announcing the acquisition.

The New York Post reported earlier the FTC had begun investigating Google over the Waze deal.


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