Posted June 12, 2008 7:03 pm by with 11 comments

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Google is wasting no time trying to convince the Department of Justice that it should approve its deal with Yahoo.

Here are the reasons, just posted to the Google blog (emphasis is Google’s)…

  • This is not a merger. Rather, we are merely providing access to our advertising technology to Yahoo! through our AdSense program.
  • This does not remove a competitor from the playing field. Yahoo! will remain in the business of search and content advertising, which gives the company a continued incentive to keep improving and innovating. Even during this agreement, Yahoo! can use our technology as much or as little as it chooses.
  • This does not prevent Yahoo! from making similar arrangements with others. This arrangement is not exclusive, meaning that Yahoo! could enter into similar arrangements with other companies.
  • This does not increase Google’s share of search traffic. Yahoo! will continue to run its own search engine and advertising programs, and the agreement will not increase Google’s share of search traffic.
  • This does not let Google raise prices for advertisers. Google does not set the prices manually for ads; rather, advertisers themselves determine prices through an ongoing competitive auction. We have found over years of research that an auction is by far the most efficient way to price search advertising and have no intention of changing that.
  • Will the ads say — “Ads By Google” ? Or “powered by Google?”

    I wonder how are they actually going to integrate the whole thing. They said, they will choose the ‘keywords’ — Question is based on what? It cant be random, can it?

  • First Microsoft, then Google? It seems to me that Yahoo is jumping from pillar to post too rapidly.Perhaps they are in more trouble than we are led to believe.

  • I wonder if Google will get the approval of the Dept. of Justice. Wish to see how this whole thing will work.

    Andy, please keep informing us of this issue

  • Yeah, this trully unpredictable ending. Let’s just see what happened next.

  • I think this deal is perfectly fine. It would be as if any other site were to use AdSense to provides it’s advertising. That is if it’s truly Yahoo adding google ads to it’s pages.

    However, it does seem a bit fishy.

    If Google were to provide search technology and begin running their searches in addition to providing advertising, then I think the public should be weary of a monopoly.

    But then again, I’m a GOOG shareholder, so I have a slanted opinion.

    Erik’s last blog post..Wanna Buy Some Blogs?

  • I think one of the DOJ’s biggest concern is that, although the deal wouldn’t prevent Yahoo! from making similar deals with other companies, they wouldn’t have much of an incentive to do so.

    CT Moore’s last blog post..Plurk Sounds Like Poop

  • Here’s hoping they just say no. Message to Google: Go back to innovating instead of “acquiring”, it’s what you do best.

    Top Rated’s last blog post..The Very Best Digital SLR Cameras

  • @Top Rated, you just said it best…

    CT Moore’s last blog post..Encouraging Number from IRCE 2008

  • I hope that this deal does not get through.
    People are afraid of the market-share in the search-market, when they should be afraid of the market-share in the advertising market. Thats where the money and the power is.

  • Top Rated, I never thought it that way, brilliant.

  • Looking at it from Google’s point of view, I think it actually makes sense. Beautifully put.

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