Inquiry on Search Partnership
Posted on Jul 2, 2008
A recent advertising partnership between search giant Google and competitor Yahoo has antitrust authorities worried. Not only does a Google-Yahoo deal look ridiculous in name, but critics (such as Microsoft) say the partnership would consolidate Google’s control of Internet search ad revenue to a whopping 90 percent of U.S. market share.
US anti-trust regulators have opened an investigation into Yahoo’s search advertising partnership with Google to examine if the $800m (£403m) a year deal restricts competition in the market.
Justice Department investigators behind the anti-trust probe will take evidence from Google, Yahoo and other large companies in the internet and media sectors, according to a report in today’s Washington Post.
Google controls 60% of the total number of internet searches made in the US, while Yahoo is the second ranked player accounting for 16.6%.
Last month Yahoo struck a 10-year deal to allow Google to put some search advertising next to its search listings.
Google’s hand in the search market is being criticized by competitors after a partnership deal to incorporate some Google ads next to Yahoo search results.