The US Federal Trade Commission (FTC) said it had closed its investigation of Google's proposed 750-million-dollar purchase of AdMob, a tie-up that raised competition and privacy concerns.

"Although the combination of the two leading mobile advertising networks raised serious antitrust issues, the agency's concerns ultimately were overshadowed by recent developments in the market, most notably a move by Apple Computer Inc. -- the maker of the iPhone -- to launch its own, competing mobile ad network," the commission said in a statement.

"As a result of Apple's entry (into the market), AdMob's success to date on the iPhone platform is unlikely to be an accurate predictor of AdMob's competitive significance going forward, whether AdMob is owned by Google or not," it said.

Two consumer groups, Consumer Watchdog and the Center for Digital Democracy, urged the FTC in December to block the takeover on antitrust grounds and said the deal also raised privacy concerns.

Google, which has previously drawn scrutiny from US antitrust regulators, hopes AdMob will help it more effectively extend its lucrative Internet advertising domain into the booming world of mobile devices.

"It's a huge win for Google and a huge loss for the rest of the people in the apps and mobile advertising business," said Mobile Streams chief executive Simon Buckingham, who has been in the mobile technology arena for 19 years.

"It's a shame. It's pretty much game over at this point."

The FTC decision promises to cement Google's dominance of Internet advertising, according to Buckingham, whose company licenses and distributes mobile content from more than 150 providers.

"I find it difficult to see how anyone now can come in and challenge Google in the digital advertising space," Buckingham said. "The champagne is no doubt flowing at Google."

On the official Google blog, the vice president of product management, Susan Wojcicki, said "the decision is great news for the mobile advertising ecosystem as a whole."

"As mobile phone usage increases, growth in mobile advertising is only going to accelerate," she said.

"This benefits mobile developers and publishers who will get better advertising solutions, marketers who will find new ways to reach consumers, and users who will get better ads and more free content."

On Thursday, Google's chief executive, Eric Schmidt, vowed if the acquisition were not allowed to go through "we'll fight about it."

"You have Apple's proprietary product," he said in an interview with the CNBC television channel. "Plus five or six companies that are all competing for parts of that mobile ad platform, not only on the iPhone but on Android phones and other devices as well."

Last year, Google was forced to revise its legal settlement with authors and publishers over its digital book-scanning project amid objections from the US Justice Department.

Google was also forced to abandon a proposed advertising agreement with Yahoo! amid Justice Department antitrust concerns.

AdMob was founded in 2006 by Omar Hamoui as a California technology startup focused on building tools that let Web advertisers follow potential customers onto mobile devices.

"We are extremely pleased with today's decision from the Federal Trade Commission to clear Google's acquisition of AdMob," Hamoui said.

"Our focus is now on working with the team at Google team to quickly close the deal."

Apple, which bought AdMob rival Quattro Wireless in January, unveiled a new mobile ad platform last month called "iAd" which allows software developers or advertising agencies to embed ads directly into applications being offered for the iPhone, the iPod Touch and the iPad.

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