Yahoo's Google Deal Raises Antitrust Concerns

With Microsoft and others certain to raise antitrust challenges over its pact with Yahoo, Google attempted to make its case Thursday for why the deal should be viewed favorably.

"Quite simply, we think it is good for users, advertisers and publishers," Omid Kordestani said in a blog posted on Thursday. "By offering Google's industry-leading technology to Yahoo, the whole system becomes more efficient, and everyone benefits."

Kordestani said that Google has already been in touch with antitrust authorities. "We have been in contact with regulators about this arrangement, and we expect to work closely with them to answer their questions about the transaction," he said. "Ultimately we believe that the efficiencies of this agreement will help preserve competition."

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Comments

[frantaylor]

Microsoft has not standing to complain about lack of competition because they are the competition.

[michelv]

Imagine if MSFT actually made any sort of successful case. It will come back to bite them in the a$$ as precedent :)

[hillhaus]

As someone who works on Google, Yahoo! and MSN ads for a variety of small and large clients, I'm both happy and somewhat angry. This will make my job easier. Getting ads on Yahoo! will probably be as easy as clicking a button in a Google AdWords account (instead of creating an entirely different Yahoo! account with different budgets, cost-per-clicks, etc.). However, advertising on Yahoo! has been a great alternative for many clients. Because fewer people use Yahoo! for PPC ads, there is less competition for certain keywords. Because there is less competition, the cost-per-click is typically much less than Google. So, even though Yahoo! is less popular, this is actually beneficial to many clients because they can get quality traffic to their site without paying as much as Google requires.

If you understand this argument, you should also understand that Microsoft doesn't have much reason to complain. Search advertising professionals will probably use MSN/Live Search PPC ads more now that Yahoo! is out of the picture. The only other relevant option for cheaper quality traffic is Baidu. Although Baidu is now more popular than MSN/Live Search, it's Chinese and not many Americans use it.

[michelv]

Aren't making some assumptions by claiming that the cost-per-click pricing structure will be exactly the same?

[ratcityreprobate]

What irony, Microsoft raising antitrust concerns? There are no bounds to their chutzpah. Besides, is their any difference between this a Morgan acquiring Bear Stearns, both Bear and Yahoo are failing enterprises.

[frantaylor]

Yahoo is not failing at all. Check out their stock price before you say things like that.

[marymansour]

Being a tremendous fan of Google, I see how it could help the faltering Yahoo community. I prefer to see Google step in rather than Microsoft.

[FZliveson]

Restraint of Trade and Antitrust litigation are so passe'. Why is someone bringing it up now? We've managed to decline as a nation, just fine- thank you very much- without it; not to mention the depletion of our Food and Drug Administration, Environmental Protection Agency and almost every other regulatory body which is supposed to monitor and protect the public from abuse. What's a little more exploitation? Surely the public has a bit more to give to lubricate the big machines...dont'cha think?