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American Anti-trust Intstitute calls for limits on Google/Yahoo PPC deal.

24th September 2008 12:22 pm

The American Anti-trust Institute (AAI) has called for limits to be established on the forthcoming PPC advertising partnership between Yahoo & Google.

The deal that would see Google adWords ads appearing on Yahoo search results is expected to be a major revenue generator for both companies and is expected to go live as soon next month.

In their press release the AAI say “The American Antitrust Institute (AAI) today released a white paper on the proposed alliance between Google and Yahoo, concluding that the transaction should be viewed as presumptively anticompetitive, although it may also contain possible pro-competitive benefits.”

The white paper they’ve released runs to 22 pages and will provide food for though for the US anti-trust authorities who are currently scrutinising the deal.

The white paper states “Google and Yahoo, the two largest providers of paid search advertising, reached an agreement earlier this summer whereby Yahoo would be able to display paid search advertising from Google. With a U.S. market share approaching 70% to 80% depending on how the market is defined, Google would already be considered a near-monopolist under traditional antitrust standards, and the combined market share of Google and Yahoo would likely exceed 90%.“. When you take those figures into account it’s clear why they have concerns.

No statement has been made by either Google, Yahoo or the US authorities however a ruling should be forthcoming soon with the self-imposed 3 and a half month delay period coming to an end. Earlier this month the EU and Canadian authorites outlined their plans to examine the alliance and so it would seem that the deal will warrent further scrutiny.

Would you like to know more about this Google and Yahoo’s pay per click advertising deal? If so, contact Hit Search, SEO and Google adWords qualified PPC specialists, on 0845 643 9289. Remember, its a big world out there, make sure you become visible.

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