September 30, 2008 by Matt Thomas
Yesterday members of the California Delegation of the US House of Representatives urged regulators to stay out of the much criticised advertising agreement between Google and Yahoo. In a letter to the US Department of Justice, they warned that any effort to interfere with or block the deal, “Could detrimentally affect the online advertising market and electronic commerce.”
The group spoke in strong terms of the dangers of scrutiny that, in their opinion, could “Chill future agreements,” and went on to explain that such partnerships were “Standard amongst internet companies.”
The deal, signed in June this year, allows Yahoo to run some search ads sold by Google and share the revenue. The deal was designed to give Yahoo a much needed revenue boost, though the deal’s detractors claim that it also gives Google too much control over the search advertising market, an area which it already dominates.
Although the letter was only signed by 11 of the 53 Californian members of the house, it comes as a fillip to the deal after a series of concerns were raised. The Californian delegates’ letter comes in the wake of another letter sent by ten members of the U.S. House of Representatives Committee on the Judiciary that expressed concern about the accord and recommended a careful review.
The Justice Department is expected to make clear whether or not it will attempt to block the deal in early October, around the time that Yahoo and Google intend to implement the deal.
Related posts:
