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Google and Yahoo delay search ad partnership

06 октября 2008

Google and Yahoo on Friday backed away from a potential confrontation with anti-trust regulators, announcing a delay to their controversial search advertising partnership to allow more time for consideration of the deal.

The delay came despite an earlier assurance by Eric Schmidt, chief executive of Google, that the partnership would go ahead regardless of when the Department of Justice completed its review.

The Friday announcement was the first public sign that the plan risks being blown off course by regulatory considerations. Agreed in June, it was meant to play a central part in Yahoo’s efforts to boost its profits, helping to secure its independence after Microsoft’s unsolicited bid approach earlier this year.

The alliance would involve Google supplying some of the adverts that run alongside Yahoo’s search results, an arrangement that would lift Yahoo’s revenues given Google’s greater effectiveness in selling some classes of advertising. However critics, including trade associations representing big consumer advertisers and newspapers, claim that the would reduce Yahoo’s incentives to compete with its bigger rival, eventually leading to less competition in the search market.

The two companies originally said they would allow 100 days for the justice department to study the partnership, describing this as a courtesy period since the alliance does not require regulatory clearance. Mr Schmidt later said the partnership would go ahead in early October regardless of whether regulators had expressed an opinion about it.

Источник: Financial Times

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