Last modified on Thursday, 19 June 2008 19:51
As expected, deals signed by Yahoo and Google are attracting the attention of anti-trust regulators.
After the Yahoo board petulantly rejected Microsoft's cash and deals, it cuddled up to the market leader Google in a bid to improve its bottom line. However, at the time analysts warned that it would make Google too strong; and surely enough has earned the U.S. Justice Department's scrutiny of the deal.
Google, with more than 60 percent of the Web search market, and Yahoo, with 16.6 percent, announced a deal last week that would allow Yahoo to place Google ads on its site and collect the revenue. The U.S. Department of Justice is concerned that the deal could lessen Yahoo's incentive to compete vigorously against Google because Yahoo would collect revenue no matter which company placed an advertisement.