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Google and Yahoo get last chance to placate DoJ

Otherwise it's walk away time
Tue Nov 04 2008, 08:31

YAHOO AND GOOGLE have sent a revised version of their proposed advertising partnership to US Justice Department anti-trust regulators

According to the Wall Street Journal, the move is the last ditch attempt by Google and Yahoo to get the deal approved before walking away.

Citing "people familiar with the matter," the WSJ said the two search engines had added "a number of new provisions designed to limit the scope of the deal" in a bid to get a green light from the Justice Department.

The new deal shortens the original agreement to two years from 10 years and caps the revenue Yahoo can generate from the deal to 25 percent of Yahoo's search revenue.

Google advertisers will have the option to opt out of having their ads displayed on Yahoo sites.

The deal comes after negotiations with the Justice Department "had reached somewhat of a stalemate" and Google and Yahoo considered walking away from the deal.

Microsoft, advertisers and regulators have raised objections to a tie-up between Google and Yahoo, claiming it would allow Google to tighten its grip on online advertising and restrict competition. µ

L'Inq
AP

 

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