Google inches closer to Yahoo deal

GOOGLE HAS CONFIRMED that it plans to implement a controversial advertising search deal with Yahoo.

The internet search behemoth also blamed the Vole for attempting to derail the nascent agreement. According to CEO Eric Schmidt, the company anticipated serious dissent over Google's increased ad market power and its impact on competition. Schmidt explained that "Microsoft [was] busy helping everyone get upset about these things".

In addition, the CEO noted that US federal regulators were doing their " proper job" by reviewing the contract terms, but emphasized that Google did not require government approval to move ahead with the deal. However, Schmidt refused to comment on whether the two companies would agree to an ad delivery limit.

The burgeoning partnership has been criticised by several notable entities, including the World Association of Newspapers and the Association of National Advertisers.

The European Union has also begun a preliminary investigation into the potential effects of the agreement on competition within the European Economic Area (EEA).

Yahoo has graciously pledged to cooperate with the probe.

"Yahoo has been and will continue to work with the relevant regulatory agencies to provide officials with the necessary information about this business agreement, which we believe will strengthen competition in search and make advertisements more relevant for our users," the company said in a statement. µ

L'Inq
Reuters