p2pnet - rss feed: Yahoogle deal could yet come unstuck
p2pnet news | Advertising:- Google, which claims more than 60% of the Web search market, and Yahoo, with 16.6%, “announced a deal last week that would allow Yahoo to place Google ads on its site and collect the revenue,” says Reuters, going on:
“The firms said Yahoo’s cash flow could grow by $250 million to $450 million in the first year under the deal, which Yahoo sought as an alternative to software giant Microsoft Corp’s $47.5 billion buyout offer.
But, “These are still independent companies who will continue to compete aggressively,” story has Yahoo lawyer Hewitt Pate declaring.
However, the picture may be very different once George W. Bush departs unlamented into the sunset.
The, “heat will likely increase under a new administration, antitrust experts said,” according to this story, which has Bruce McDonald, a former deputy assistant attorney general, saying the deal could, “lessen Yahoo’s incentive to compete vigorously against Google because Yahoo would collect revenue no matter which company placed an advertisement”
Says lawyer Evan Stewart, “At the end of the day, you’re going to have to show some very effective computer modeling … to show that consumers are at worst no worse off.”
Meanwhile, “They’ve had a dialogue with the DOJ (Justice Department) … which is unusual. DOJ is not in the business of giving counseling to companies as to what flies,” Reuters quotes another lawyer, David Turetsky, as saying.
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Reuters - Yahoo-Google deal faces scrutiny: antitrust experts, June 18, 2008
$47.5 billion buyout - Anti-Microsoft Google / Yahoo alliance?, February 4, 2008
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