Anyone worried about competition in the online ad space in the wake of Google Inc.'s pending $3.1 billion acquisition of DoubleClick Inc. need only look at the rampant consolidation in the sector to feel better. That's the message conveyed by Google policy counsel Pablo Chavez in a recent blog posting.

Seems the spin is in full swing ahead of congressional hearings on the search giant's deal, which was announced in April. Google execs are expected to testify before the Senate Judiciary Committee at a hearing focusing on the consolidation sweeping the online ad market. A House Commerce subcommittee on consumer protection is also planning a hearing.

According to Chavez, venture capitalists also see opportunity, noting that several online ad startups have gotten funding since the DoubleClick deal was announced. Indeed, lawmakers should be encouraging dealmaking in the sector because "these market dynamics will ultimately benefit consumers who will see more relevant and useful ads, and provide advertisers and publishers with more choices," he says.

Chavez doesn't touch on the other big concern consumer groups and lawmakers have been voicing over the deal and Google in general: privacy. Maybe that's next up in the Google spin cycle. —Olaf de Senerpont Domis

See Google public policy blog
See July 19 story from TheDeal.com
See July 6 story from The Deal

Tags: Google, DoubleClick, search engine