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Sparks Fly as Yahoo, Microsoft Take to Hill

Yang admitted deal with Google would hurt competition: Microsoft

By Kevin Spak,  Newser Staff

Posted Jul 16, 2008 11:08 AM CDT

(Newser) – Congressional hearings on Yahoo's proposed ad deal with Google got a little heated yesterday, with a Microsoft lawyer testifying that Yahoo CEO Jerry Yang recently admitted, in a private meeting, that the pact would reduce competition, the Los Angeles Times reports. Yahoo’s general counsel said he recalled no such remarks at the meeting, and a spokesman later swatted the charge aside.

The Justice Department is looking into the ad deal, as are a number of state attorneys general; Yahoo and Google say they'll pause for the investigation. The hearing, mainly a legislative formality, became a tug of war between Google and Microsoft, with Google and Yahoo arguing that a Microsoft/Yahoo merger was an even more troubling prospect than the Google/Yahoo alliance.

Yahoo Chief Executive Jerry Yang, right, accompanied by General Counsel Michael Callahan, testifies on Capitol Hill in this Nov. 6, 2007 file photo.
Yahoo Chief Executive Jerry Yang, right, accompanied by General Counsel Michael Callahan, testifies on Capitol Hill in this Nov. 6, 2007 file photo.   (AP Photo/Dennis Cook, file)
In this Jan. 7, 2008 file photo of Yahoo CEO Jerry Yang giving a keynote address at the Consumer Electronics Show (CES) in Las Vegas.
In this Jan. 7, 2008 file photo of Yahoo CEO Jerry Yang giving a keynote address at the Consumer Electronics Show (CES) in Las Vegas.   (AP Photo/Paul Sakuma, file)
Microsoft lawyer Brad Smith gives a press conference in this file photo. Smith told Congress yesterday that Yahoo's CEO once said his company's deal with Google would reduce competition.
Microsoft lawyer Brad Smith gives a press conference in this file photo. Smith told Congress yesterday that Yahoo's CEO once said his company's deal with Google would reduce competition.   (AP Photo)
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