End of the road for Google and Yahoo deal

Google can’t take the antitrust heat as it abandons its plans to join advertising forces with Yahoo.

Google has walked away from its plans to launch an advertising deal with Yahoo, the company has revealed in a blog post.

The move comes as a response to opposition from antitrust regulators and advertisers.

Yahoo expressed dismay at Google's decision, saying it was "disappointed that Google has elected to withdraw from the agreement rather than defend it in court."

Just yesterday, the two companies provided the US Justice Department with a revised version of the deal, in a bid to win the regulators over.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

The Justice Department, in a statement issued on Wednesday, said it had told Google that it planned to file a lawsuit to block the deal on antitrust grounds.

"Had the companies implemented their arrangement, Yahoo's competition likely would have been blunted immediately with respect to the search pages that Yahoo chose to fill with ads sold by Google rather than its own ads," the Justice Department said.

Google and Yahoo, numbers one and two in the internet search market, announced the planned partnership in June but delayed implementation to allow the Justice Department to scrutinize it for antitrust issues.

Google said it pulled out of the deal rather than face a protracted legal fight.

"After four months of review, including discussions of various possible changes to the agreement, it's clear that government regulators and some advertisers continue to have concerns about the agreement," the Google legal officer, David Drummond, said in his internet posting.

"We're of course disappointed that this deal won't be moving ahead," he said.

Advertisement - Article continues below

Between them, Google and Yahoo had more than 80 per cent of the web search market in August, according to comScore.

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Recommended

Visit/cloud/cloud-computing/354479/google-adds-partners-to-real-time-translation-tools
cloud computing

Google adds partners to real-time translation tools

8 Jan 2020
Visit/hardware/354336/the-it-pro-products-of-the-year-2019-all-the-years-best-hardware
Hardware

The IT Pro Products of the Year 2019: All the year’s best hardware

24 Dec 2019
Visit/marketing-comms/search-engine-optimization-seo/354339/google-is-getting-worse-as-it-does-more
search engine optimization (SEO)

Google is getting worse as it does more

21 Dec 2019
Visit/security/internet-security/354417/avast-and-avg-extensions-pulled-from-chrome
internet security

Avast and AVG extensions pulled from Chrome

19 Dec 2019

Most Popular

Visit/microsoft-windows/32066/what-to-do-if-youre-still-running-windows-7
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Visit/operating-systems/25802/17-windows-10-problems-and-how-to-fix-them
operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020
Visit/operating-systems/microsoft-windows/354526/memes-and-viking-funerals-the-internet-reacts-to-the
Microsoft Windows

Memes and Viking funerals: The internet reacts to the death of Windows 7

14 Jan 2020
Visit/hardware/laptops/354533/dell-xps-13-new-9300-hands-on-review-chasing-perfection
Laptops

Dell XPS 13 (New 9300) hands-on review: Chasing perfection

14 Jan 2020