Dept. Of Justice Reviewing Yahoo & Google Test

24 Apr

From Reuters:The U.S. Justice Department is investigating possible antitrust implications of Google’s two-week test with Yahoo to combine some of their Web search and advertising business, a source informed about the matter told Reuters on Wednesday.

Google and Yahoo separately told Reuters they had informed the Justice Department about their test before it was launched.

 

In the test, which ends this week, Yahoo uses Google’s advertising system to show ads to Yahoo users based on their searches.

 

The Justice Department is concerned the test may violate antitrust law, the source said, adding that authorities “have initiated an investigation” of it.

 

The source, who spoke on condition of anonymity, said some of the government’s concern focused on a telephone call from Google Chief Executive Eric Schmidt to Yahoo Chief Executive Jerry Yang to offer help in thwarting Microsoft’s bid worth around $44 billion.

 

The test was one of a series of efforts by Yahoo to fend off Microsoft’s unwelcome bid.

 

A second source said the Justice Department was concerned about a longer-term deal between Google and Yahoo, and had an initial inquiry underway into the matter.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: