Google & Yahoo make concessions with PPC deal
4th November 2008 1:32 pm
A report in the Wall Street Journal has outlined subtle concessions made by Google and Yahoo! in a re-submitted search advertising deal.
There were fears that anti-trust scrutiny might de-rail the alliance completely however two search giants are now hoping that a capped deal will assuage fears of a monopoly.
Key to the new pay per click deal is a cap on the amount of revenue Yahoo! can make on this partnership. The deal will not be allowed to generate more that 25% of Yahoo’s search revenues and is seen as a way of limiting the reliance Yahoo! can place on Google adWords for it’s income. Also another crucial concession has been added that will allow adWords users to opt-out of having their ads shown on Yahoo!
It is likely these changes have been brought in to address specific objections raised by anti-trust investigators and so represents a compromise aimed at mobing the deal through to approval.
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