The month of June saw Yahoo striking a deal with Google to run ads on its site beside its search query results. Yahoo was estimated to generate revenue of $800 million annually from this deal. The combined partnership was also estimated to capture at least 90 percent of the search advertising market.
While Google was benefited by its gain in power, Yahoo successfully put off Microsoft’s efforts of an acquisition.
lot of market players have expressed concern over this partnership which if consolidated could become an undisputed monopoly. Microsoft leads the way by lobbying reporters to write against this deal. They have been trying their best to stop this deal which could be a big hit for their market presence.
According to a SFGate report, California attorney general Jerry Brown and the US Justice Department have agreed to review this deal and slap Google with an anti trust suit over its deal with Yahoo.
The two companies in the limelight Google and Yahoo are implying they did not require from the authorities an upfront approval as this was not a merger. They also reiterated that this deal was not exclusive to either of the parties.
Though there are no legal implications here, the US Justice Department seems to be trying to work out a fair deal or even stop the deal from going through if possible. Advice was being sought by the Justice Department from a third party consultant in this regard according to Tracy Schmaler, director of Yahoo global public affairs.
