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The advertising deal between Yahoo and Google continues to cause controversy, with the DoJ expected to announce their thoughts on the deal soon

The Association of National Advertisers sent an official letter to the United States Department of Justice, voicing its concern of the controversial Yahoo-Google search advertising deal reached at the end of July.  

The letter sent to Assistant Attorney General Thomas Barnett included a "comprehensive, independent analysis" of the proposed deal between the two internet giants.  Assuming the DoJ doesn't step in and stop the partnership, Yahoo and Google would essentially control around 90 percent of internet search advertising inventory, which groups such as the ANA believe would throttle fair competition.  

In theory, advertisers are worried that Yahoo will offload its searches to Google and prices will go up once Google controls almost all of the search market.  Google will offer Yahoo advertising services that can be used with Yahoo's search engine and other online services. 

The ANA is made up of more than 400 companies that invest at least $100 billion in marketing and advertising, internal ANA numbers indicate.

Google wants to begin the agreement with Yahoo sometime next month, even though the deal remains under heavy scrutiny by the DoJ, Google Chief Executive Officer Eric Schmidt said in an interview in August.  Both Google and Yahoo offered to give the government three and a half months to evaluate the deal, even though that legally wasn't necessary.

Both search engine giants said prices would be determined by the advertisers and not between Yahoo and Google, but a large portion of the advertising industry still is not convinced.  Not surprisingly, Microsoft has also been an outspoken critic of the deal, stating that there is a strong possibility of a Yahoo-Google monopoly.  The deal is effective for the United States and Canada only, with both companies declining to mention if the deal could go international at a later date.

The Justice Department is expected to announce in the next few weeks if it will try and block the Yahoo-Google deal, and to what extent it wishes to do so.



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Monopoly
By jtesoro on 9/8/2008 8:32:01 AM , Rating: 2
Unless someone else steps up, Monopoly here we come.




RE: Monopoly
By IceBreakerG on 9/8/2008 9:18:39 AM , Rating: 2
At least they don't have to worry about going straight to jail and not collecting their $200.


RE: Monopoly
By Ticholo on 9/8/2008 9:20:41 AM , Rating: 2
Can the deal be allowed with some conditions imposed by the DoJ or some one else, or would it be completely out of the question if ruled a monopoly? (This is probably nowhere near as clear-cut as I just made it sound, though...)


RE: Monopoly
By dreddly on 9/8/2008 9:25:54 AM , Rating: 4
I am viewing this thread from chrome, after checking my gmail and searching for an article on google scholar. I will go work on a file in google documents and check out some online videos on google video, before checking google maps for directions and heading to a event I saw on google news.

Whatever are you talking about?

p.s. will there soon be a time when a paragraph contains so many copyrighted and trademarked terms, that we will have to pay a royalty to discuss our non-monopolies?


RE: Monopoly
By jtesoro on 9/8/2008 10:28:57 AM , Rating: 2
Your paragraph infringed on a lot of Google copyrights. Because of that you owe them contacts of your friends, family and co-workers. You also must give them information your interests, what you're doing and where you are located.

Oh wait, they got that from you already. Forget about it then.


RE: Monopoly
By greenchasch on 9/8/2008 11:18:40 AM , Rating: 2
There's only a 50-50 chance it will go through anyway.


Beneath the Surface?
By paydirt on 9/9/2008 8:46:59 AM , Rating: 2
Gosh, an association is going to have commercial reasons for being pro/against something, so I'm surprise that no one has commented about this after a full day.

Naturally, advertisers are going to be against advertising as a profession becoming more proficient and less driven by people. People make their livings in advertising off of inefficiencies and gray area, so any move that is going to increase efficiencies of scales/technologies is going to be opposed.

"Hey! You're making us irrelevant!" We don't want to slow down processes (change) that make things irrelevant, we want to embrace/accelerate them. People decry Wal-Mart because of the loss of local jobs at shops that charge an arm and a leg; however, Wal-Mart saves people money (and gas) and it forced other businesses to lower their prices to compete.

Also, Yahoo! is getting crushed and the recent episode with MSFT made YHOO shareholders (and maybe employees) lose confidence in Yang. If YHOO "went away" there would be no clear competitor to GOOG, we don't want that to happen even if it means they join forces for now.




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