WASHINGTON - The head of the Federal Trade Commission said Friday she won't remove herself from an antitrust review of Google Inc.'s purchase of online advertising company DoubleClick, rebuffing requests from privacy groups opposed to the transaction.
Deborah Platt Majoras, chairwoman of the FTC, said she has reviewed a petition from the groups with the agency's ethics official and other staff, and determined that "the relevant laws and rules...neither require nor support recusal."
The Electronic Privacy Information Center and the Center for Digital Democracy said in a petition Wednesday that Majoras' husband, John M. Majoras, is a partner at the Jones Day law firm. The groups alleged that DoubleClick hired Jones Day to represent the company before the FTC on its acquisition by Google, the leading Internet search company.
The Majoras' relationship "calls into question the ability of the commission to render decisions that are fair and just," the groups said.
Deborah Majoras said Friday that Jones Day hasn't appeared before the FTC on the transaction, and is only representing DoubleClick before the European Commission, which is also scrutinizing the deal. John Majoras said Wednesday that he has not been involved in any aspect of the transaction.
FTC staff learned Tuesday of Jones Day's role in Europe, Deborah Majoras said, prompting her to consult with the agency's ethics official, Christian S. White.
Federal officials are barred from participating in decisions that could affect their financial interests, Majoras said. But her husband is no longer an equity partner at Jones Day, which means his compensation doesn't change if the firm's income changes, she said.
"Hence, I do not have a financial conflict in this matter," she said in a statement.
White, the ethics official, also determined that any appearance of a conflict of interest was outweighed by the government's interest in her participation in the decision, Majoras said.
Blair Levin, an analyst at Stifel Nicolaus, wrote Thursday in a note to clients that he believed Majoras supports approving the deal, and her recusal could have led to a 2-2 tie among the remaining four commissioners. But that would still allow the deal to go forward, because a majority of commissioners is required for the FTC to try to block a deal in court.
Commissioner William E. Kovacic, whose wife, Kathryn Fenton, is also a partner at Jones Day, said he would also not remove himself. Kovacic was not mentioned in the privacy groups' petitions.
Google shares rose $2.21 to $696.26 in midday trading Friday.
