Google, Yahoo Put Ad Deal On Hold

Gives DOJ more time

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Google and Yahoo have agreed to put their search advertising deal on hold while Justice Department regulators continue their antitrust review of the controversial partnership.

"The companies have agreed to a brief delay in implementing this agreement to continue our ongoing discussions with the (U.S.) Department of Justice," Yahoo said in a statement. "We have had discussions with regulators and look forward to responding to their questions about this agreement."

Google also issued a statement on the delay.

"When we announced our advertising agreement with Yahoo in June we agreed to delay its implementation until October to give regulators time to look at the details. As we are still in conversation with the Department of Justice we have agreed to a brief delay in implementing the agreement while those discussions continue," the company said.

Under the terms of the Google-Yahoo deal, Google will provide a portion of the advertising displayed when the Yahoo search engine is used. The two companies will split the revenue.  The amount of advertising outsourced will be entirely at Yahoo’s discretion.

Yahoo expects the deal will generate between $250 to $800 million a year in additional revenue. Yahoo says it will use the money to restructure and improve its search business in order to attract more users and boost search advertising sales.

Critics charge the agreement will lead to higher advertising prices and unfair competition. A number of advertiser groups have voiced concern over the deal, including the Association of National Retailers.

Combined Google and Yahoo had about 83 percent of the U.S. search market in August, according to comScore.


Google, Yahoo Put Ad Deal On Hold
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