Watchdog group urges FTC to scrutinize latest Oracle deal

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The Center for Digital Democracy wants the Federal Trade Commission to really look over Oracle’s proposed acquisition of Datalogix, announced Monday morning.

The combined consumer data gathered by [company]Datalogix[/company] (via partnerships with [company]Facebook[/company] and [company]Twitter[/company] and other sources) along with Oracle’s earlier buyout of BlueKai, another data broker, may give [company]Oracle[/company] just a little too much consumer data for the public’s own good, according to the CDD.

In a quick phone interview, CDD Executive Director Jeff Chester said the regulatory agency needs to look at data privacy issues when considering the competitive aspects of such M&A activity. The CDD has a list of M&A deals that it says indicate a hastening consolidation of data aggregating companies including Axcient’s buy of Liveramp in May; Adobe Systems’ acquisition of Neolane in June 2013, and Oracle’s acquisitions of Eloqua in December 2012 and Responsys a year later..

Per an earlier emailed statement Chester said:

“Through the data it gathers on what we buy, and with its relationship with Facebook and other powerful marketers, Datalogix consists of a online treasure trove of data on Americans. The Oracle deal announced today follows its recent acquisition as well of Bluekai, which holds reams of information on consumers.”

The CDD also pointed out that under a previous settlement with the FTC, Facebook agreed to obtain consumers’ permission before sharing their data. The specter of that agreement surfaced when Facebook bought WhatsApp.

Chester also said:

“[Given] the FTC’s 20-year consent decree with Facebook, and the role that Datalogix plays with the social network, it also must review whether the deal requires additional safeguards under that decree. The growing consolidation of information on every American and whatever we do — regardless of location, time of day, whether we are online or off — should trigger action, as well as soul searching by both policymakers and the public.”

In August the CDD asked the FTC to look into the practices both of data brokers — including Datalogix and Acxiom as well as marketing software companies like Salesforce.com — to make sure they were complying with the Safe Harbor between the U.S. and European Union. That safe harbor provision lets these U.S. vendors “self-certify” that they are adhering to strong data protection standards.

Oracle hopes to use that data to inform its marketing automation software and “data cloud.” In that arena it competes competition with [company]Salesforce.com[/company], [company]Adobe Systems[/company] and others.

Oracle had no comment for this story.

Note: this story was updated at 11:25 a.m. PST with Jeff Chester’s comment and again at 11:51 a.m. PST with CDD’s list of data aggregator-linked mergers and acquisitions..

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