Bigger Data Broker Mergers as Oracle Swallows Datalogix, after Acquiring Bluekai/FTC must review deal to address privacy, competition.

By: Jeff Chester | Dec 22 2014

Statement of Jeff Chester, executive director, CDD

With personal information on every U.S. individual, their families, community and workplace the "currency" in today's digital economy, the frenzy of dealmaking in the databroker business continues as Oracle acquires Datalogix.   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. 

CDD calls on the Federal Trade Commission to closely scrutinize the proposed deal.  It must examine the impact on competition and protect the privacy of Americans.  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.  Both Oracle and Datalogix are members of the EU/US Data Protection Safe Harbor program and the commission must examine how this pending databroker/consumer targeting acquisition impacts that program.  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.  Do we want a society where a very powerful few data barons are able to gather and profit from our information without an individual having any ability to protect their privacy?

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PS:  This summary via Adexchanger is useful to see the impact and intention of this deal:

Datalogix aggregates and provides insights on over $2 trillion in consumer spending from 1,500 data partners across 110 million households to provide purchase-based targeting and drive more sales. Over 650 customers, including 82 of the top 100 US advertisers such as Ford and Kraft, as well as 7 of the top 8 digital media publishers such as Facebook and Twitter use Datalogix to enhance their media. Oracle and Datalogix's Data as a Service cloud solutions will provide marketers and publishers with the richest understanding of consumers across both digital and traditional channels based on what they do, what they say, and what they buy. This will enable leading brands to personalize and measure every customer interaction and maximize the value of their digital marketing. The combination fundamentally transforms marketing automation from executing campaigns to being able to correctly identify consumers, target them accurately with digital campaigns, allow marketers to measure which campaigns and channels are effective, and optimize how they reach consumers and spend their campaign resources. The addition of Datalogix represents a further extension of Oracle's Public Cloud strategy to combine IaaS, PaaS, SaaS and Data as a Service on a common cloud and to transform SaaS business applications and processes by integrating data within these applications. More information can be found at http://www.oracle.com/datalogix.

Supporting Quotes

"The addition of Datalogix to the Oracle Data Cloud will provide data-driven marketers the most valuable targeting and measurement solution available," said Omar Tawakol, group vice president and General Manager of Oracle Data Cloud. "Oracle will now deliver comprehensive consumer profiles based on connected identities that will power personalization across digital, mobile, offline and TV." "Datalogix's mission is to help the leading consumer marketers connect digital media to the offline world, where over 93 percent of consumer spending occurs," said Eric Roza, CEO, Datalogix. "We are thrilled to join Oracle and extend the value Oracle Data Cloud brings to marketers and publishers."

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