Jun 16, 2008 113 reads by Navneet Kaushal

According to the Washington Post, the Google and Yahoo! Non-Exclusive Advertising Agreement is taking on a lot of heat from the anti-trust officials and the Department of Justice. Their main concern being, that this deal might catapult Google into becoming a monopoly in the field of search marketing.

Heads of key subcommittees in the House and the Senate repeatedly raised their concerns about whether the Google-Yahoo! deal would diminish competition. As per the Google-Yahoo! deal, Google would provide the ads for an undisclosed portion of Yahoo's search queries in the United States and Canada.

Rep. Bobby L. Rush (D-Ill.), chairman of the Commerce subcommittee on commerce, trade and consumer protection and said in a statement, "The deal "is yet another example of the rapid changes in this market, and further underscores the need for close scrutiny,"

Kent Walker (Google, General Counsel), "Our sense is that by the end of the review, they'll be comfortable with the process. We do feel that it is a pro-competitive deal."

Microsoft was also not far behind in giving its opinion and stated, "Our position has been clear since April that any deal between these two companies will increase prices for advertisers and start to consolidate more than 90 percent of the search advertising market in Google's hands. Legal and industry experts agree that this would clearly make the market less competitive."

Also at the Webmaster World, there are numerous posts about the anti-trust questions raised on the Google-Yahoo! Deal. Here are a few excerpts from that thread:

"whether you love google, or not…I think them getting yahoo! is bad for everyone in the long run. i don't want, or trust them controlling my advertising costs in any way, shape, or form….nor could i understand anyone else wanting 1 company with this much power.
and the article so said that goog or yahoo doesn't "set the prices, its done by auction." that's a lie. yahoo just recently implimented "minimum bids" which sets the prices for certain keywords. and we all know about the google $10 minimum bid…
this deal clearly restricts competition, and is bad for everyone involved in Internet marketing."

"It is also bad for web publishers who are *fully depend* upon adsense content network. Yahoo already started its own blog like content network targeting all niche. Now this deals."

"that's suck. how could millions of small businesses like us depend on just 1 golliath. (can you handle the google's dance recently? not me!) the internet suppose to be for everyone and now it suck to see that 1 company control everything.

Google is like an emperor now (we all make money for him) and you don't want to mess with him or you ask for troubles. Imagine that if you in the market that Big G thinking to enter then you're very much a dead meat.

Google is to big for you to even have a chance! "

"The point is that if Google started to abuse its monopoly like Microsoft did, then people would just switch to another search provider like they did when Google first came on the scene. At the time Altavista and Yahoo ruled the web. It is very much harder to switch your OS than to switch your search provider.

Google has no ability to abuse the monopoly so why should they be open to anti-trust investigations? Them owning 70% of search and advertising does not stop me from starting my own search engine so it does not impact competition.

How would they be able to do that? Why would they want to do it? Wal-mart actually sells goods, Google is just an advertiser. Why would Google have an interest in closing small businesses?"

On the other hand, to avoid such hurdles as anti-trust issues Google and Yahoo! lawyers are already in talk with the Department of Justice officials.

Navneet Kaushal

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
Navneet Kaushal
Navneet Kaushal
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