Yahoo, Google, DOJ play let's make a deal; Google could walk

Yahoo, Google, DOJ play let's make a deal; Google could walk

Summary: Google and Yahoo are talking to the Department of Justice about heading off an antitrust suit over the companies' search advertising deal.According to the Wall Street Journal, Google and Yahoo are offering up concessions to the Department of Justice to push their deal through.

SHARE:

Google and Yahoo are talking to the Department of Justice about heading off an antitrust suit over the companies' search advertising deal.

According to the Wall Street Journal, Google and Yahoo are offering up concessions to the Department of Justice to push their deal through. For Google, Yahoo is just more volume. To Yahoo, Google is a way to better monetize its pages. To the DOJ a Google-Yahoo tie-up is worrisome because it consolidates the online ad market in Google's favor.

The key excerpt here:

In the settlement talks with the government, both companies have discussed concessions. These include capping the volume of Google ads Yahoo would use, assurances that Yahoo would continue to compete in search ads, and a reporting mechanism to ensure compliance, people close to the talks said. U.S. officials hope to impose measures that will ensure that prices advertisers must pay don't rise significantly after the deal.

There are also possible requirements to disclose the mechanics of the Google-Yahoo relationship.

What'll happen? My hunch is Google walks. I doubt that Google is going to disclose anything to have a deal with Yahoo. In the short term, however, Yahoo needs the monetization help. Yapping from the cheap seats is Microsoft, which is lobbying the DOJ hard. Google's deal with Yahoo already succeeded anyway--Microsoft didn't buy Yahoo.

  • So if you're Google you have to be wondering:
  • Why would you acknowledge your market power to the DOJ?
  • Do you really need Yahoo now?
  • What are the chances that Microsoft would either become a search player or buy Yahoo?

In the end, it all adds up to a graceful walkaway for Google. As for Yahoo, it'll continue to muddle through.

Topics: Google, Browser, Government, Government US, Social Enterprise

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

5 comments
Log in or register to join the discussion
  • So Google succeeded how?

    You state the Yahoo deal was a success because MS didn't buy Yahoo. In retrospect that was actually bad for Google since Yahoo would have done nothing but weigh MS down. If anything it would have been better for Google if MS had bought Yahoo because of the substantial strain MS would have felt. Also it cost them lots of very skilled engineers that may not have wanted to work at MS and would have gladly jumped over to the Google ship.

    All in all, I think Google helped MS by stopping the Yahoo deal, not themselves.
    LiquidLearner
  • @LiquidLearner

    Then why did Microsoft want to buy Yahoo?
    AzuMao
    • Because their own search is as poor as their OS's ...

      ... but with search, users can easily choose which engine they wish to use, rather than having one forced upon them from the get go.

      MS can't compete on merit, and has long forgotten how to, so it is attempting to buy its way in.
      fr0thy2
  • RE: Yahoo, Google, DOJ play let's make a deal; Google could walk

    Look people, with such bad products, M$ does'nt stand a chance, and they can't turn the search business into a cash cow, because Google offers what the people want, simplistic, minimal ads, and a polished experience, not Gay Dating.com on the side of every page like M$ live.
    bluraybha
  • RE: Yahoo, Google, DOJ play let's make a deal; Google could walk

    All the best search engines piled into one. Including Google, Yahoo.
    http://www.allthebestsearchengines.blogspot.com
    monalami