Yahoo-Google deal faces scrutiny: antitrust experts

WASHINGTON (Reuters) - Google and Yahoo face intense U.S. Justice Department scrutiny of their deal to share some advertising revenue, and the heat will likely increase under a new administration, antitrust experts said.

Google, with more than 60 percent of the Web search market, and Yahoo, with 16.6 percent, announced a deal last week that would allow Yahoo to place Google ads on its site and collect the revenue.

The firms said Yahoo's cash flow could grow by $250 million to $450 million (127 million to 229 million pounds) in the first year under the deal, which Yahoo sought as an alternative to software giant Microsoft's $47.5 billion buyout offer.

Yahoo and Google describe the deal as very limited. "These are still independent companies who will continue to compete aggressively," said Yahoo lawyer Hewitt Pate of law firm Hunton and Williams.

But the deal has raised eyebrows among antitrust lawyers.

Bruce McDonald, a Jones Day antitrust attorney and former deputy assistant attorney general, pointed out that the arrangement could lessen Yahoo's incentive to compete vigorously against Google because Yahoo would collect revenue no matter which company placed an advertisement.

Reader Comments

Pavan Solanki has 7 Years Experience as a Internet Professional - Speciallization in Search Engine Optimization, Internet Marketing, Web Promotion, SEO Content Writing, Link Building, Blog Marketing, PPC and Advance SEO Training.


Hi Nice BLog Companies who offer training also offer seo training management services. Would they share all their knowledge with you? After all, you will be competing with them one day. Some of these classes are conducted by the CEO of the company -- when did they last personally optimise a site.

Welcome to SEO Consultant Blog

Thank you for taking the time to visit my blog! Take a second to peak around and check out some of my previous posts. You will find here latest news related to SEO industry

Find me on