The Association of National Advertisers has voiced its concerns related to the implications that a Google-Yahoo! agreement would have on fair competition. The letter sent to the Department of Justice, which is currently reviewing the partnership between the two companies, comprises “a comprehensive, independent analysis, which included input from the Board’s members and face-to-face discussions with Google and Yahoo!” the association claims.
ANA's concerns are related to the fact that, should the partnership be given the green light, the two companies would be responsible for over 90% of the search advertising business. This can lead to the development of an unhealthy market, as both users and advertisers are not provided with the same possibility of choice. According to the association, the Google-Yahoo! alliance “will likely diminish competition, increase concentration of market power, limit choices currently available and potentially raise prices to advertisers for high quality, affordable search advertising.”
As it already common knowledge, the two companies have reached an agreement that will allow Google to display ads along with the search results provided by Yahoo! Although regulation was not compulsory, the partners have decided to delay the closure of their business agreement for 100 days, so that governmental institutions have their say on whether the affiliation is legitimate or not.
ANA was not the only organization to protest against the deal. From the very beginning, Microsoft too has expressed disapproval with the association. “If search is the gateway to the Internet, and most believe that it is, this deal will put Google in a position to own that gateway and the information that flows through it,” said Brad Smith, Microsoft Corp. senior vice president and general counsel, on July 15. “Never before in the history of advertising has one company been in the position to control prices on up to 90 percent of advertising in a single medium. Not in television, not in radio, not in publishing. It should not happen on the Internet.” he concluded by saying.
