The Google/Yahoo! advertising deal that was underway is being delayed because of a Department of Justice (DOJ) investigation, according to PC World.
A little over a week ago, Google had these comments to say.
“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,” Google said on Friday. “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.”
The advertising deal that had originally been planned was to let Google advertise on Yahoo!’s search and some of Yahoo!’s other online properties.
Google is not going down quietly though, Google strongly believes that this is a good deal for both companies as well as the public.
For those of us, including myself, that are not lawyers, this may look like a clear monopoly case that if Google were to take over advertising from Yahoo!, you would have to deal almost exclusively with Google to get your ads displayed, causing there to be less and less competition to keep the prices down.
Competition causes innovation and keeps prices lower, which is why we, the people, ought to encourage and want competition; it benefits us.
I believe that a Google/Yahoo! deal would be bad for advertisers and publishers, for the reasons explained above.
October 10th, 2008 at 9:16 am
Ya, but a Microsoft/Yahoo deal would be worse, Wouldn’t it?
October 10th, 2008 at 9:25 am
I don’t think a Microsoft/Yahoo deal would be worse because neither Y! or MS have that *amazing* of an ad platform that could seriously be a competitor to Google.
The reason being that a lot more publishers are using Google than MS or Y!.
The problem that Y! is running into is relevancy and they want more relevant ads appearing to generate more money. That is one of Google’s strong points for arguing that it would be a good move for Google to assume ad serving responsibilities on Yahoo! properties.