Yahoo-Google Advertising Deal Attracts Anti-trust Investigation
Last month, the two major web search giants, Google and Yahoo, announced a deal wherein Yahoo would be displaying Google Ads on its sites in return for some ad revenue.
According to the deal, Google, which currently leads the web search market with over 60 percent share will have its advertising displayed on search queries on Yahoo’s sites, which currently holds 16.6 percent of the web search market. As per Yahoo, the four year deal is expected to fetch them up to $800 million in revenue, every year. After the deal, Yahoo and Google both agreed to perform tests of the same, which would be limited to Yahoo’s US site, traffic to which was no more than 3 percent of the overall search query traffic. According to both the companies, the deal would be fully implemented only after a voluntary review from the US Department of Justice, as reported by the Washington Post.
However, the Department of Justice is now planning to launch a formal antitrust investigation on the deal, which according to the Post, may be because the DOJ found some cause for concern. Some investigators reported that documents would be demanded from the two companies, along with “other large companies in the Internet and Media industries.”
Officials from Yahoo, were reported by the paper as quoting:
There is nothing unexpected in the review of this arrangement as structured by the parties and Department of Justice officials.
The companies have given the antitrust authorities 100 days before they begin implementing the program.
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