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.