Yahoo And Google Revise Deal To Try To Win Antitrust Approval

from the bargaining dept

With Yahoo and Google in the midst of a vast negotiation with the Justice Department to try to avoid an antitrust lawsuit over their proposed ad deal — even to the point of Google threatening to back out entirely — it shouldn’t come as a surprise that they’re going to propose various modifications to the deal.

The news today is leaking that the two companies are proposing a greatly scaled back version of the deal to see if it passes Justice Department muster. In this case, the deal would be shortened from 10 years to just two, and would limit how much revenue it could represent to Yahoo while also allowing any advertiser to opt out of the deal. We’re still waiting for a clear explanation of how this deal will actually negatively impact consumers, but some people still insist it will. For those who believe so, let’s ask a simple question: how is this any worse than Yahoo disappearing from the marketplace? Because if the company doesn’t do something soon that may be what we’re looking at.

Filed Under:
Companies: google, justice department, yahoo

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Comments on “Yahoo And Google Revise Deal To Try To Win Antitrust Approval”

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6 Comments
orlin says:

“We’re still waiting for a clear explanation of how this deal will actually negatively impact consumers”

I was thinking about this for quite a while. The basic idea is that the lack of competition brings alot of problems. Indeed, this is something we can agree upon. Even though for now the Google ad-system is based upon the market, this might change once the merge is complete. After all 90% share of something is alot of power and abusing it is just one step away.

I should agree, that if Yahoo is to go bancrupt, then even a greater problem will arise. A merger might not be the best step, yet in this case it might be (is) the only possible one.

Cheers,
Orlin

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