Key senator intervenes in Google, Yahoo deal investigations
A key senator has urged the US Justice Department to keep up its investigation into the antitrust implications of the Google, Yahoo ad deal. G1 phone I Google's Chrome
By Agencies |
WASHINGTON: A key senator is urging the Justice Department to keep up its investigation into the antitrust implications of the Internet advertising partnership that Google Inc and Yahoo Inc plan to launch this month.
In a letter on Thursday, Wisconsin Democrat Herb Kohl, chairman of the Senate Judiciary antitrust subcommittee, said his panel concluded that "important competition issues are raised by this transaction." He urged the Justice department to "continue to monitor the state of competition in this industry."
The Justice Department is already examining the deal to decide whether to intervene, and had no comment on Thursday beyond reiterating that the review continues.
Under their partnership, Google sell some of the ads displayed alongside search results on Yahoo's Web site. Because Google's system for identifying and displaying ads is more lucrative than Yahoo's own approach, Yahoo embraced this link with its rival as an alternative to a takeover by Microsoft Corp.
Several advertisers have raised concerns, arguing that the partnership will limit competition, raise prices and reduce choices in the online advertising market. Microsoft also has been lobbying the Justice Department to intervene.
Kohl, who raised concerns about the partnership when it was first disclosed and held a hearing in July, did not take a formal position on whether the deal should be blocked. But his letter urged the Justice Department to step in to protect competition if it determines that Google is "gaining a dominant market position" because of the deal.
He added that even if the department concludes that the partnership does not violate antitrust law, it "must be sure that this deal never in the future crosses the line into an unacceptable, anti-competitive collaboration among competitors which will harm consumers and advertisers."
Google and Yahoo have ramped their own campaign to defend the partnership. They insist the deal will benefit consumers and advertisers by enabling both companies to deliver targeted ads that are more relevant to viewers.
"We believe that this arrangement is good for competition and will benefit advertisers, Web site publishers and consumers," Google said in a statement.
The two companies have also stressed that it will be up to Yahoo to decide when and whether to show an ad from Google's inventory. And they maintain that by driving additional revenue for Yahoo, the partnership will make it a stronger competitor to both Microsoft and Google.
Kohl is not the first lawmaker to weigh in. Last week, several lawmakers from the San Francisco Bay area, where both Google and Yahoo are based, sent a letter to the Justice Department arguing that its intervention "could detrimentally affect the online advertising market and electronic commerce."
In a letter on Thursday, Wisconsin Democrat Herb Kohl, chairman of the Senate Judiciary antitrust subcommittee, said his panel concluded that "important competition issues are raised by this transaction." He urged the Justice department to "continue to monitor the state of competition in this industry."
The Justice Department is already examining the deal to decide whether to intervene, and had no comment on Thursday beyond reiterating that the review continues.
Under their partnership, Google sell some of the ads displayed alongside search results on Yahoo's Web site. Because Google's system for identifying and displaying ads is more lucrative than Yahoo's own approach, Yahoo embraced this link with its rival as an alternative to a takeover by Microsoft Corp.
Several advertisers have raised concerns, arguing that the partnership will limit competition, raise prices and reduce choices in the online advertising market. Microsoft also has been lobbying the Justice Department to intervene.
ADVERTISEMENT
Kohl, who raised concerns about the partnership when it was first disclosed and held a hearing in July, did not take a formal position on whether the deal should be blocked. But his letter urged the Justice Department to step in to protect competition if it determines that Google is "gaining a dominant market position" because of the deal.
He added that even if the department concludes that the partnership does not violate antitrust law, it "must be sure that this deal never in the future crosses the line into an unacceptable, anti-competitive collaboration among competitors which will harm consumers and advertisers."
Google and Yahoo have ramped their own campaign to defend the partnership. They insist the deal will benefit consumers and advertisers by enabling both companies to deliver targeted ads that are more relevant to viewers.
"We believe that this arrangement is good for competition and will benefit advertisers, Web site publishers and consumers," Google said in a statement.
ADVERTISEMENT
The two companies have also stressed that it will be up to Yahoo to decide when and whether to show an ad from Google's inventory. And they maintain that by driving additional revenue for Yahoo, the partnership will make it a stronger competitor to both Microsoft and Google.
Kohl is not the first lawmaker to weigh in. Last week, several lawmakers from the San Francisco Bay area, where both Google and Yahoo are based, sent a letter to the Justice Department arguing that its intervention "could detrimentally affect the online advertising market and electronic commerce."
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
