Google Readies Defense of Yahoo Ad Deal

Efficiencies outweigh anti-competition issues, giant says; critics not so sure
By Jim O'Neill,  Newser User
Posted May 22, 2008 9:35 AM CDT
Eric Schmidt, Chairman and CEO of Google.   (AP Photo/Phelan M. Ebenhack)
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(Newser) – An advertising deal between Google and Yahoo is certain to stir the Justice Department’s antitrust division into action, no matter what the two do to address concerns, experts anticipating a partnership between the two Internet leaders tell the New York Times. Google says a deal would simply be a supply matter, with parallels in other industries.

Google is proposing to place its ads next to Yahoo search results, which could be worth $1 billion a year to Yahoo. Google says it’s no different than Canon supplying printer engines to rival HP, a form of "co-opetition." Some antitrust experts feel differently. “A transaction like this, I think, is fundamentally anticompetitive,” one attorney says.