[Posted on December 14, 2007 - 1:18 PM]
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Federal Trade Commission Chairman Deborah Platt Majoras has refused to recuse herself in the agency's review of Google Inc.'s $3.1 billion acquisition of DoubleClick Inc. Two privacy groups, the Electronic Privacy Information Information Center, or EPIC, and the Center for Digital Democracy, or CDD, on Wednesday formally asked Majoras to relinquish any role in deciding if the merger passes regulatory muster because she is a former partner, and her husband a current employee of, Jones Day, which is advising DoubleClick on the deal. That represents a conflict of interest, the organizations argued.
But in a statement on Friday, Majoras said that federal ethics rules do not require her recusal. DoubleClick's official counsel in dealing with the FTC on the transaction is Simpson, Thacher & Bartlett LLP; Jones Day represents private equity firm Hellman & Friedman Capital LLC, which is selling DoubleClick to Google, Majoras said.
"I understand that no one at the FTC was aware that Jones Day was involved in the [European Commission] review of this transaction until the afternoon of Tuesday, Dec. 11, 2007, at which time staff learned and contacted me," Majoras said, noting that she had consulted the FTC's chief ethics adviser, Deputy General Counsel Christian White, in reaching her decision. "Following my customary practice when I learn that Jones Day is or may be involved in a matter, I immediately contacted the FTC's ethics official, and asked him to undertake a conflict of interest analysis."
Majoras also dismissed the privacy group's contention that her husband, Jones Day partner John Majoras, has a financial interest in the U.S. government's ruling on Google's purchase of DoubleClick.
"Because my participation in this matter is consistent with federal ethics laws and regulations, I intend to fulfill the duties entrusted to me when I was appointed and confirmed," Majoras said.
Firing back with their own statement, EPIC head Marc Rotenberg and CDD director Jeffrey Chester said Majoras has not made a "persuasive case" in declining to stand aside in reviewing the deal. Jones Day has acknowledged that it is representing DoubleClick in the FTC's merger view, they said, accusing the law firm of trying to conceal its connection to the case.
"Moreover, once we called attention to the Jones Day statement on this matter, the firm promptly removed the relevant page from their Web site," they said. "Even now, a quick search for the term 'DoubleClick' at the Jones Day Web site produces 'no matches found.' The logical conclusion is that Jones Day represents DoubleClick in this matter, became aware of the conflict of interest once it was brought to their attention, and sought to destroy the relevant evidence."
Rotenberg and Chester also asked Majoras to disclose the FTC ethics official's report on a potential conflict of interest in the agency's review. - Alain Sherter
See Dec. 13 story from Tech Confidential
See Dec. 14 press release from the FTC
For more see Jeff Chester's Digital Destiny blog, PaidContent.org and P2PNet.net
