A lot of stories have surfaced about the planned Google-Yahoo deal especially since Microsoft mounted a campaign to block the said deal. However, it is important to note that this campaign is not really a declaration of war; it just means that Microsoft is against the deal.
“Our position has been clear since April that any deal between these two companies will increase prices for advertisers and start to consolidate more than 90 percent of the search advertising market in Google’s hands”, according to Microsoft spokesperson Jack Evans. This basically means that the market will be less competitive.
Meanwhile, Google said that the deal will actually “preserve” competition because it offers “industry-wide technology” to the Yahoo system. As a result, the whole system can become more efficient and everyone will benefit. Google stated that the deal was good for users, publishers, and advertisers. But so far, no regulatory agencies have yet taken up either of the two positions.
Both Yahoo and Google stated that they do not need to get regulatory permission to go ahead with the deal. However, they need to wait around three and a half month before federal regulators “understand” their deal. Only time will tell whether Microsoft’s prediction or Google’s claim is the right one though.
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