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Google Scraps Partnership With Yahoo

Search giant proves unwilling to fight antitrust regulators over deal

By Nick McMaster, Newser Staff

Posted Nov 5, 2008 1:40 PM CST

(Newser) – Google canceled its search-advertising partnership with Yahoo rather than fight a Department of Justice lawsuit over antitrust concerns, CNET reports. The company gave up on the deal after Justice said it was not satisfied with the companies’ revisions to the deal and would sue to block it.

“After four months of review, it's clear that government regulators continue to have concerns about the agreement,” Google’s chief legal officer said today. "Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners…so we have decided to end the agreement.” A Yahoo statement said the company still wanted the deal and was “disappointed” that Google scrapped it.

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The Google logo is seen on display at the company's headquarters October 18, 2007 in Mountain View, California. (Getty Images)

In this Jan. 7, 2008 file photo, Yahoo CEO Jerry Yang gives a keynote address at the Consumer Electronics Show (CES) in Las Vegas. (AP Photo/Paul Sakuma, file)

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The arrangement likely would have denied consumers the benefits of competition—lower prices, better service and greater innovation.
- Assistant Attorney General Thomas Barnett, leader of the Justice Department's antitrust division

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Google Scraps Partnership With Yahoo