Microsoft-Yahoo Deal Faces Scrutiny by the US Justice Department

Two months after the Yahoo-Microsoft deal was sealed, it’s now time to scrutinize the said deal. The US Justice Department has just asked the two companies to provide more details about the search ad deal. This latest development officially puts the controversial partnership agreement under a long procedure to determine whether is should push through or not.Both Microsoft and Yahoo are reportedly preparing their responses to questions that could include details of their respective search-engine investment, ad pricing and product plans. All of these are aimed at proving that if the said deal pass through the Justice Department, its claim of not being anti-competitive is actually valid.

Among the possible questions that Microsoft and Yahoo would need to answer is whether their claim that the said deal will make them more competitive agaisnt Google. Along the way, the Justice Department might also probe on other relevant internet advertising programs of Microsoft and Yahoo to determine whether each individual company will not be able to compete if they will not team up. In addition, the Justice Department would also like to find out whether this deal will really be beneficial to users.

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PG

Arnold Zafra

Arnold Zafra writes daily on the announcements by Google, Ask.com, Yahoo & MSN along with how these announcements effect web publishers. He is currently building three niche blogs covering iPad News, Google Android Phones and E-Book Readers.

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Comments

  1. gloria says:

    I was under the impression that the US was for free enterprise. This sounds like they wish for Google to have a monopoly in the search market. I guess I just don’t understand why they would want to be anti competitive. Seems to that is the heart and soul of business.

  2. Avene says:

    Google is a great giant here in Europe, I do not think they will be able to compete with him.

  3. I will be shocked if this deal gets approved. If it does it will only be due to the fact the government thinks Google is too strong and they need some competition.

  4. Todd says:

    The gov is in bed with google… people need to research the gov utilizing googles services ;)

  5. Nasta says:

    Can anyone answer in U.S. Google more powerful or Yahoo and Bing together?

    Sorry for my bad english.

  6. The people measuring search engine marketing share on the basis of “number of queries performed” (essentially page views) are using a nonsense metric. You should include CNN’s pageviews in that kind of search engine market share as well, because it’s equally relevant.

    The proposed Microsoft-Yahoo! deal will impact consumers and advertisers alike in that it will remove 1 of 3 top algorithms from consumer search options and it will eliminate 1 of 3 top search-based advertising networks.

    How many page views a search engine receives is really meaningless to the rest of the Web community because searchers only want to know how many good sites they can find and get to through search and Webmasters want to know how many visitors the search engines send them.

    Google is nowhere near the powerhouse people make it out to be when compared to Microsoft and Yahoo! on those terms. Yahoo! still sends a TON of traffic to other sites.

    The question is, what happens to that traffic when Yahoo!’s algorithm goes away? Some of Yahoo!’s searchers will stay loyal to Yahoo!, but will all of them stay with Yahoo!?