Search engine giant Google Inc (NASDAQ:GOOG) said antitrust lawyers from the Federal Trade Commission (FTC) had contacted the company over its acquisition of Israeli mobile map software company Waze Inc, which Google confirmed earlier in June, the Wall Street Journal reported.
An official at Google refused to comment for the newspaper on Saturday. FTC did not wish to comment either.
According to an informed person, Google had bought the app maker for USD1.1bn (EUR839m). Despite the fact the the deal was completed and that Waze’s revenue was low, the FTC has the right to review transactions if they have been finalised, the WSJ said.
Competition lawyers claim that FTC is not likely to request from Google to break up the deal as it will need evidence to prove that the acquisition would hamper competition on the navigation and mapping applications market, the paper said.
The WSJ further cited sources as saying that Waze was takeover target for social network Facebook Inc (NASDAQ:FB) and mobile device and PC maker Apple Inc (NASDAQ:AAPL).
According to Waze, its navigation application has been downloaded and used by 45 million people in 190 countries. For comparison, Google Maps has a userbase of billions. When confirming the deal in mid-June, Google said it would keep Waze as a stand-alone firm, but would integrate Waze’s traffic data into its Google Maps and vice versa.