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30 September 2008

Trade bodies challenge Yahoo!/Google deal

Resistance to the proposed search advertising partnership between Google and Yahoo! is growing with two industry organisations voicing their opposition within the space of a week.
 
The Association of National Advertisers was the first to speak out, when it lodged a complaint to the US Department of Justice that the partnership would limit choice for online advertisers as the alliance would control 90% of the search ad inventory.
 
Then the World Association of Newspapers (WAN), which represents 18,000 newspapers across the world, waded in by calling on North American and European antitrust authorities to block the deal.
 
WAN expressed concern that Google would have unwarranted market power over important segments of online advertising.
 
President Gavin O'Reilly said that the competition that currently existed between Google and Yahoo was absolutely essential in ensuring that WAN's member titles received competitive returns for online advertising on their sites.
 
He also warned that the deal could result in higher prices for paid search advertising.
 
The revenue-share deal would allow Google to sell search and other text ads on Yahoo!
 
It is not yet clear how the deal would pan out for search engine marketers, although any increase in the cost of paid search would likely further highlight the value of SEO.


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