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Initial indications are that the U.S. Department of Justice will try to block the new Yahoo-Google ad deal if compromise is not reached

When Google and Yahoo first announced that they were forming an advertising partnership, the industry warmly embraced the news, though it unsettled some competitors, such as Microsoft.  The trial runs of the deal went quite well -- Yahoo got more advertising revenue and Google inched closer to gaining complete control of the online ad market, which it already overwhelmingly dominated.

The only dark cloud in the deal's sunny sky was the looming prospect of a regulatory review of the more permanent partnership the pair agreed to pursue.  After no word for months, Yahoo and Google continued to forge ahead until they were rocked by the news that the U.S. Department of Justice who was examining the deal was considering antitrust litigation to break it up.  The DOJ feared that the deal would give Google an abusive position of power which it could use to squash smaller competitors, a view backed by Microsoft, which once was subject to similar antitrust litigation in the OS market itself.

Now Google and Yahoo are trying to race the clock to work out a deal with the DOJ, before it breaks up theirs.  According to lawyers familiar with the negotiations, they are in a very early stage.

While it's willing to work with the pair to try to cut a deal, the Department of Justice is compiling more evidence to use in a potential case.  It aims to be able to clearly prove its view that the deal would give Google too much power.  This view is backed by numerous online advertisers who complained to the DOJ.  According to these advertisers, the Google deal will kill the free market in online advertising, by limiting competition, raising prices and reducing choices.

Under the new deal, Yahoo would begin to display ads sold by Google.  Yahoo would get more revenue as Google's ads are a big cash draw.  Google would gain a tighter grip on the market and might be able to get more from its advertising partners, arguing that it now offers wider market penetration.  The alliance would help to ward of the failed advances of Microsoft on Yahoo, and help Google to apply pressure on Microsoft's third place advertising position.

Google and Yahoo are hoping sweeteners will convince the DOJ to allow the deal.  Among these, the pair is considering offering to put a cap on the number of ads sold, as well as assuring that Yahoo would continue to compete for ads.  They also would agree to be monitoring to ensure compliance, according to those familiar with the negotiations.

Both Yahoo and Google decline comment on the talks, stating that they believed the deal was legal and good for competition.  The DOJ also refused comment, with a spokeswoman only stating, "Our investigation is ongoing".

The real question is whether the concession could lead to a change of heart from Google or Yahoo management.  Both companies closely guard their advertising mechanic secrets, and the release of reports would spill much of that information into the public eye.  Ad caps would limit Yahoo's financial gains from the deal.  Further, critics like Microsoft have argued that online advertising is too dynamic to effectively monitor such a deal.

Also, the filing of a deal would establish a legal record, acknowledging Google's dominant position.  This could make it a target for private antitrust suits.

Despite attempts to reach a deal, lawyers and executives contacted by the government say that the Department of Justice is preparing an elite trial team for a potential antitrust trial.  They have already taken a deposition from Google Chief Executive Eric Schmidt and other key figures.  Microsoft eagerly submitted to deposition and offered evidence that it feels would strengthen the DOJ's case against Google-Yahoo.  The deal is also under investigation by various states.  The pair has consented to staying the deal till at least October 22, giving the DOJ time to make an official decision.

The loss of the deal would be a bitter pill for Yahoo, who is counting on the deal as a lone ray of sunshine amid falling profits and steep stock devaluation.  With the fate of the internet in the balance many are nervously anticipating the DOJ's decision and wondering -- is this the start of the end for Googlehoo or just the beginning?



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Maybe I'm jaded but...
By AssBall on 10/15/2008 2:50:24 PM , Rating: 4
I'd rather see a Microhoo than a Googlehoo.

Whats better than 2 huge companies competing? Three. But Yahoo is falling on rough times these days.




RE: Maybe I'm jaded but...
By ebakke on 10/15/2008 2:54:12 PM , Rating: 5
quote:
Whats better than 2 huge companies competing?
Many small companies competing.


RE: Maybe I'm jaded but...
By FITCamaro on 10/15/08, Rating: 0
RE: Maybe I'm jaded but...
By BruceLeet on 10/15/08, Rating: 0
RE: Maybe I'm jaded but...
By BruceLeet on 10/15/2008 5:36:10 PM , Rating: 2
Hold on just a minute, I can't believe how unimaginably gay that has made me look, taken in certain context.

If there are any gays on these boards no offense sincerely


RE: Maybe I'm jaded but...
By ebakke on 10/15/2008 5:42:55 PM , Rating: 2
Maybe I'm just slow (and I'm leaving that option on the table), but I don't get it. Even after reading it several times.

More importantly though, how does a statement that makes you "look gay" offend other people who are gay?


RE: Maybe I'm jaded but...
By Myg on 10/15/2008 8:22:42 PM , Rating: 1
I think the logic in his mind is that being gay is offensive somehow?

If so, the concept of being gay is offensive to him and its projected on those who may be gay to try and offset his own discomfort with what he said.


RE: Maybe I'm jaded but...
By BruceLeet on 10/16/2008 12:11:10 PM , Rating: 2
spoken with indian accent

Heyyyyy!! Look at us we're Indian and we are gayyy!!

My traditional Indian father: That is disgusting! Do you know them!?

Dad why would I know them?

Dad: because they are of the gay, and you are in show business. this is not right we should not have gay indians

Dad we have a population crisis over there right now I think we could use a few homos

Courtesy of Russell Peters


RE: Maybe I'm jaded but...
By Myg on 10/15/08, Rating: -1
RE: Maybe I'm jaded but...
By sgw2n5 on 10/15/2008 4:57:26 PM , Rating: 1
I wasn't aware that humanity, in general, relied upon fictitious deity's to perpetuate honor and fairness in the economy.

In that case, I'd like to blame the Easter bunny, the tooth fairy, and Jesus for my 401k losing money.


RE: Maybe I'm jaded but...
By Myg on 10/15/2008 7:34:54 PM , Rating: 2
Funny you say that...

I wonder what is written on all those coins and dollar bills...

Anyone remember?

In ___ we trust?

;-)


RE: Maybe I'm jaded but...
By Myg on 10/15/2008 7:56:07 PM , Rating: 2
There are a few ways...

God is the highest level of existence, and is perfection without question; so all the virtues that we treasure are expressed in him.

When we look to God, we are reminded of these virtues and strive to reach them. Thus perpertuating honour and fairness, even if it can be a little jaded at times ;-)

The very fact that this occurs means that God exists, if we were simple machines working on instinct only, without a connection to a higher reason and purpose; we would not be able to philosophise or even diagnose our virtue and compare it to something greater.

People without God generally trust in money, other people and ways of escaping reality.

Trusting in money means you serve money only and its the only end to your existence and your a slave to its every whim. Having it defines your existance and not having it means your hopeless, you think people judge you on the size of your house, your clothes and cars... Oh my, whats this whole mess about people borrowing more money then they can afford so they can have the nicer house and look better to others? I wonder why that happened.

Trusting in other people means you think they are perfect and flawless. This leads to people becomming over-dependent and unable to cope with life and situations when the person they worship makes a mistake or fails them. Bitterness and heartbreak ensue, permenantly scarring people and making society more closed. This means people are more scared of others around and wont chance endavours as much in future.

Trusting in ways of escaping reality; speaks for itself: if your not trying to make yourself useful in society then someone; somewhere will have to offset the balance. Society is all interconnected, every choice you make permenantly effects the entire world around you. There is nothing you can do that will not be felt somewhere; the only question you should be concerned about is that what your doing is productive or destructive? (returns to original point of looking for purpose/virtue)


RE: Maybe I'm jaded but...
By Agent Ghost on 10/16/2008 8:50:20 AM , Rating: 1
"God is the highest level of existence, and is perfection without question; so all the virtues that we treasure are expressed in him."

Not everyone believes in God so how can you say that all virtues are expressed in him. Secondly, these virtues existed before Christianity. It's more accurate to say that Christians molded god after existing virtues. When virtues change, god will change.

"When we look to God, we are reminded of these virtues and strive to reach them. Thus perpertuating honour and fairness, even if it can be a little jaded at times ;-)"

You don't need god to be virtuous. This notion is insulting.

"The very fact that this occurs means that God exists, if we were simple machines working on instinct only, without a connection to a higher reason and purpose; we would not be able to philosophise or even diagnose our virtue and compare it to something greater."

Irrelevant and insufficient. Philosophy is far larger and likely older than the concept of god.

"People without God generally trust in money, other people and ways of escaping reality."

The reality is that the poor are more likely to attend church. The reason for this is because the poor are generally less educated. This however does not mean that wealthy people are automatically amoral.

"Trusting in other people means you think they are perfect and flawless. This leads to people becoming over-dependent and unable to cope with life and situations when the person they worship makes a mistake or fails them."

Non religious people do not worship, you do. Only religious people hand out trust and faith without scrutiny.

"the only question you should be concerned about is that what your doing is productive or destructive?"

Virtue is a bit more sophisticated than that.


RE: Maybe I'm jaded but...
By Myg on 10/16/2008 4:42:58 PM , Rating: 2
"Not everyone believes in God so how can you say that all virtues are expressed in him. Secondly, these virtues existed before Christianity. It's more accurate to say that Christians molded god after existing virtues. When virtues change, god will change."

- Please point out to me a civilisation that did not beleive in things higher then them.

"You don't need god to be virtuous. This notion is insulting."

- Try making your own "virtues" without any input from other humans beings, your concience or your reason.

Irrelevant and insufficient. Philosophy is far larger and likely older than the concept of god.

- Philosophy is the search for the higher, see the first response.

The reality is that the poor are more likely to attend church. The reason for this is because the poor are generally less educated. This however does not mean that wealthy people are automatically amoral.

- Am I to assume that your saying people who go to church are less educated? Your entire response reeks of personal guilt and bias..

Non religious people do not worship, you do. Only religious people hand out trust and faith without scrutiny.

- Its all about priorities, if you make God the centre of your life; you worship him. If you make Cars the centre of your life; you worship them. If you make Money the centre of your life; you worship it. Your heart lies where you spend your time.

Virtue is a bit more sophisticated than that.

- If it was sophisticated; it wouldnt be so easily apparent when its present. Otherwise; explain.


RE: Maybe I'm jaded but...
By Omega215D on 10/15/2008 4:53:57 PM , Rating: 2
Nah, google and yahoo should be GooHoo! and their employees be goobacks.

Hortonhearsahoo, but all's not well in Yahooville.


Milton Friedman Once Said
By pauldovi on 10/15/2008 8:17:59 PM , Rating: 2
"Most economic fallacies derive from the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another. "




RE: Milton Friedman Once Said
By Ordr on 10/16/2008 1:22:53 PM , Rating: 2
Friedman?


RE: Milton Friedman Once Said
By Ordr on 10/16/2008 1:23:31 PM , Rating: 1
Of course it was Friedman, you said it in the subject heading. Maybe I should fucking read. Ugh.


Yahoogle
By reredrum on 10/15/2008 3:22:27 PM , Rating: 2
I think Yahoogle sounds better. It just rolls off your tongue. Say it...




RE: Yahoogle
By rudolphna on 10/15/2008 7:46:56 PM , Rating: 2
lol I do like that. Yahoogle... hmmm It has a nice ring to it. Yahoogle Corporatation... =D


Why am I the only one who
By Staples on 10/15/2008 3:37:09 PM , Rating: 3
thinks that this move make yahoo look like they are beyond mediocre. Having been bought by MS looks fine but this is just an admision of mediocrity.

At yahoo we have no idea how to run a businenss so we are outsourcing our search advertising (80% of their business) to google. And if this goes through, then what advantage does a company have buying ad space from yahoo? If they all run to google since the end result is the same, then Yahoo goes bankrupt and yang will be out of the job as he should have been 4 months ago.




"We are going to continue to work with them to make sure they understand the reality of the Internet.  A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis














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