The European Union competition watchdog is to review Google’s $3.1 billion acquisition of DoubleClick, the largest broker of online banner advertising, following a request from the search giant.

The move comes after national regulators passed on the opportunity to review the deal on an individual basis and handed the matter to the European Commission.

Julia Holtz, Google’s competition counsel for Europe, said: “Given the pan-European nature of both Google and DoubleClick's businesses we felt that the commission was best placed to review the acquisition.''

The development comes after Europe’s major consumer group, BEUC, said it feared Google’s acquisition of DoubleClick would damage privacy rights and limit consumers’ choice of web content.

Both companies collect and store information about consumers' internet habits. Critics fear a combination will endanger privacy.

Google rivals including Microsoft and WPP, the British advertising group, have also raised concerns over the deal. Both of those groups had been rival bidders for DoubeClick to Google.

In the US, consumer privacy advocacy groups have already asked the US Federal Trade Commission to investigate the proposed combination.

Times Recommends

• Equitable Life halts £7bn sale on market turmoil
• Potential buyers emerge to save Woolworths staff
• Terrorist attacks close Bombay Stock Exchange