CW News Archive
With DOJ Suit Looming, Google Calls Off Search-Ad Deal With Yahoo
November 5, 2008:Yahoo said Wednesday that it "continues to believe in the benefits" of its search-ad agreement with Google and is "disappointed that Google has elected to withdraw from the agreement rather than defend it in court."
Google pulled out after the Department of Justice said it would file an antitrust suit to block the agreement, which would have replaced a portion of Yahoo's search advertising with ads from Google. The agreement was announced in June, with both search giants saying they would delay putting the plan in action until the DOJ had completed any proposed investigation. Google and Yahoo made some revisions to their plan to address the DOJ's concerns, but the agency ultimately said it would try to block the agreement in court.
DOJ Asst. Attorney General Thomas Barnett said Wednesday, "The companies' decision to abandon their agreement eliminates the competitive concerns identified during our investigation and eliminates the need to file an enforcement action. The arrangement likely would have denied consumers the benefits of competition -- lower prices, better service, and greater innovation."
Yahoo said in a statement that, although cash from the Google arrangement would have let it "accelerate its investments in its top business priorities," losing the agreement "does not change Yahoo's commitment to innovation and growth in search."