Feds Probing Google-Yahoo Deal

Formal investigation signals that Justice may have antitrust concerns
By Jim O'Neill,  Newser User
Posted Jul 2, 2008 9:24 AM CDT
This Jan. 7, 2008 file photo shows the Yahoo tent at the Consumer Electronics Show (CES) in Las Vegas.    (AP Photo/Paul Sakuma, file)
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(Newser) – Google’s agreement to provide Yahoo with advertising for some of its searches in the US and Canada has prompted the Justice Department to launch a formal antitrust investigation into the deal, the Washington Post reports. "They don't do it without having identified significant issues," one lawyer said of the action, which goes beyond the voluntary review the search giant expected.

The feds plan to demand documents from Google, Yahoo, and other large Internet and media players. Critics say Google’s deal with Yahoo would give it a monopoly in Internet advertising by giving it control of search advertising, one of the Internet’s biggest money makers; a Justice spokesman would not comment when asked if Microsoft would be asked for information in the investigation.