Google delays Yahoo ad deal
- Added:
- Oct 06, 2008
Google is postponing a planned online advertising tie-up with Yahoo to allow more time for US anti-trust regulators to consider the consequences of the deal.
The deal would see Yahoo! using Google ads posted next to results on Yahoo search pages.
In an email statement, Google said: "When we announced our advertising agreement with Yahoo! in June we agreed to delay its implementation until October to give regulators time to look at the details. As we are still in conversation with the Department of Justice we have agreed to a brief delay in implementing the agreement while those discussions continue."
Eleven California state political leaders are urging US regulators not to interfere with the proposed tie-up between Google and Yahoo.
The legislators, from the state where both the Internet firms are based, signed a letter warning US Attorney Michael Mukasey that Internet market growth and innovation "could be stifled" by blocking the Google-Yahoo alliance.
The letter read: "We are deeply concerned that the Department of Justice may be considering a preemptive lawsuit to block Yahoo's non-exclusive online advertising agreement with Google. "If such action were taken, we believe such an unprecedented suit could detrimentally affect the online advertising market and e-commerce."
Meanwhile, Senate Judicial Subcommittee chair Senator Herb Kohl has pledged close scrutiny of the deal and reportedly urged the DOJ to intervene if it looks like a Yahoo tie-up helps Google dominate online advertising.