FTC conducting preliminary inquiry of Google's Waze acquisition
San Francisco: Antitrust regulators are conducting a preliminary inquiry into Google Inc's(GOOG.O) recent acquisition of online mapping service Waze, according to a person with knowledge of the matter.
The inquiry by the U.S. Federal Trade Commission has not reached the level of an investigation and Google is complying voluntarily, the source said.
Google paid just over $1 billion in cash to acquire Israel-based Waze earlier this month, sources familiar with the matter have told Reuters. Google was able to close the deal without U.S. regulatory approval because Waze's revenue and assets in the U.S. were below the $70.9 million threshold required for antitrust review.
The four-year-old Waze has 47 million users but has only recently begun efforts to generate revenue from its service. Waze uses satellite signals from members' smartphones to generate maps and traffic data, which it then shares with other users, offering real-time traffic info.