Advertisers and lawmakers, along with Google and Yahoo executives, are eagerly awaiting a decision from the Department of Justice on the Internet search giants’ ad agreement. The DOJ is expected to decide by mid-October whether Google can provide Yahoo with search advertisements.
At stake are the future of search advertising prices and whether Yahoo could remain in the search business. Some observers think the long process indicates the DOJ is considering views from opponents of the deal.
“My best guess is that they’ll either oppose or approve the deal in its entirety, but the fact that it’s taking so long for the DOJ to make up its mind makes me hopeful that they will seek the type of restrictions we have proposed,” said Norman Hawker, senior fellow at the American Antitrust Institute.
The institute released a white paper on the agreement, calling it “presumptively anticompetitive with procompetitive benefits,” and suggested several provisions.
Both Yahoo and Google have said the deal is procompetitive and will benefit advertisers, consumers and publishers.
“The Internet is a dynamic, competitive environment due to the openness which has always been its hallmark,” said Google attorney David Drummond. “Let there be no doubt about this point — Google and Yahoo will remain fierce competitors in search online advertising and many other products and services.”
Bob Liodice, president of the Association of National Advertisers (ANA), is happy with the length of time it is taking the DOJ.
“It’s not a long time,” Liodice said in an interview with us. “They are simply doing their due diligence. This has broad implications, so they must be sure to do it right and their investigation mirrors the seriousness for what they need to accomplish.”
Liodice, who posed several questions to Yahoo about the deal on Wednesday, heard back from the company’s executive vice president, Hillary…