Report: DOJ Investigating Yahoo-Google Ad Test
According to Reuters, The Department of Justice has opened an anti-trust investigation relating to Yahoo’s test of Google advertising in search results. Additionally, the DOJ is looking into whether or not there were anti-trust implications of Google CEO Eric Schmidt contacting Yahoo CEO Jerry Yang after Microsoft made its unsolicited acquisition offer. From the report:
“… The Justice Department is concerned that the test may violate antitrust law, the source said, adding that authorities “have initiated an investigation” of it … The source, who spoke on condition of anonymity, said that some of the government’s concern focused on a telephone call from Google Chief Executive Eric Schmidt to Yahoo Chief Executive Jerry Yang to offer help in thwarting Microsoft’s $44.6 billion bid.”
While Google was able to eventually get their controversial acquisition of DoubleClick cleared, the combined marketshare of Google and Yahoo in search advertising is estimated by most at around 80 percent.
The test of Google advertising, first announced on April 9th, has “yielded positive results” according to a report in The Wall Street Journal last week. Thus, the prospects a prolonged Google-Yahoo relationship have increased, and apparently raised some red flags at the DOJ.
Meanwhile, does anyone else see the not-so-subtle irony in Google being investigated for anti-trust violations by mingling in a deal that Microsoft is trying to complete?
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