We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

DOJ investigation holds up Google-Yahoo deal

Concerns over impact on competition

Google and Yahoo will further delay their controversial search-advertising deal in the face of an ongoing investigation by the US Department of Justice.

"When we announced our advertising agreement with Yahoo in June we agreed to delay its implementation until October to give regulators time to look at the details," Google said on Friday. "As we are still in conversation with the Department of Justice, we have agreed to a brief delay in implementing the agreement while those discussions continue."

The agreement, announced just as Microsoft's acquisition bid for Yahoo was falling apart, will let Yahoo run Google ads with Yahoo's search results and on some Yahoo sites in the US and Canada. Critics have said the deal will hurt competition and lead to higher prices, since Google and Yahoo hold the top two market-share positions in search.

Google, which has recently stepped up its public statements in support of the deal, argues that prices will remain fair because advertisers pay based on an auction system. "Neither Google nor Yahoo set ad prices," wrote Tim Armstrong, president of advertising and commerce for Google in North America, in a recent blog post. "Ads are priced by an auction where an advertiser only bids what an ad is worth to them."

Google recently launched a website arguing why it thinks the deal would be good for advertisers.

The DOJ has confirmed that it is conducting an antitrust investigation into the partnership.


IDG UK Sites

Apple promises developers better stability, performance for Swift

IDG UK Sites

5 things we hate about MWC: What it's like to be a journalist at a technology trade show

IDG UK Sites

Interview: Lauren Currie aims to help design students bridge skills gap

IDG UK Sites

12in Retina MacBook Air release date rumours: new MacBook Air to have fingerprint ID, could launch...