The Google-Yahoo Deal Would Destroy the Market

Just like in the past, Google encounters difficulties when trying to make a major move on the market because 16 organizations based in the United States asked regulators to analyze the Google-Yahoo deal, on the grounds that it could destroy the competition. A month ago, Google and Yahoo announced a deal that would allow the Mountain View-based company to place adverts on Yahoo's SERP, a deal which could boost Google's success in the search advertising industry.

According to Pocket-Lint, a group of civil rights and rural advocacy bodies said that such a deal would affect the whole market and not only the direct competitors of the two giants, Google and Yahoo. However, Google's CEO Eric Schmidt said that, if the deal with Yahoo is finalized, the competition is one of the main aspects to be analyzed. "If there were a deal [with Yahoo], we would anticipate structuring the deal to address the anti-trust concerns that have been widely discussed," he commented according to the same source mentioned above.

The 16 organizations have already sent in a letter to the Justice Department saying that, if the deal goes further, the Mountain View-based company can get approximately 90 percent of the whole market, Pocket-Lint adds.

"Google has already exhibited a pattern of violating privacy, engaging in anti-competitive conduct and using its monopoly power in the search market to drive Internet users to its affiliated services and its viewpoints on policy matters," Gary Flowers, Black Leadership Forum, said.

As you know, Google had similar problems in the past when the DoubleClick acquisition was put on hold due to complaints coming from other companies that talked about anti-trust infringement. Following a long investigation, the anti-trust regulators allowed the Mountain-View based company to finalize the deal and integrate DoubleClick's technologies into its own offering.