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DoJ reportedly launching probe of Google-Yahoo ad deal |
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Written by Daniel
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Wednesday, 02 July 2008 |
Yahoo-Google ad test triggers DoJ antitrust scrutiny
By Jacqui Cheng | Published: July 02, 2008 - 11:04AM CT
The US Justice Department is in the process of launching an in-depth investigation into Google and Yahoo's advertising deal. The DoJ has already begun requesting documents from Yahoo in order to probe into the general nature of the agreement, with more specific document requests, civil investigative demands (CIDs) from third parties, and executive interviews expected within the next month or so.
Yahoo-Google ad test triggers DoJ antitrust scrutiny
"This has been a formal investigation since day one, given its high-profile," an inside source told CNet. "There was never the option to have an informal investigation done."
The situation goes back to early April, when Yahoo inked a small, temporary deal with Google to test out Google ads on a number of Yahoo's search result pages. The ads would only run on up to three percent of Yahoo's search pages, and only for a couple of weeks. Some analysts speculated that outsourcing the entire Yahoo search advertising function to Google had the potential increase Yahoo's cash flow by 25 percent in the first year. Just over two weeks later, word on the street was that both Yahoo and Google were happy with the results and hoped to extend the partnership. After Microsoft's attempt to take over Yahoo finally went flat in May, Yahoo and Google inked a 10-year, nonexclusive ad pact. [ARS Technica...] [Comments...] |
