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Google Calls it Quits with Yahoo!

After a grueling four month review from regulators, Google has decided to end its agreement with Yahoo!

The Yahoo!-Google advertising agreement was announced in June 2008 and was meant to be a non-exclusive agreement to provide Yahoo! with access to Google’s AdSense programs on their US and Canadian web properties. Google provides three main facts about the agreement:

  • The deal was created to help strengthen Yahoo!
  • Ad prices would have continued to be set by competitive auction
  • The deal was structured as a win-win for consumers, advertisers and publishers because it would potentially lead to more and better ads on Yahoo!

Google announced today on the Official Google Blog that the agreement is now over with Yahoo! It has been made clear that government regulators and advertisers continue to have concerns about the deal, and that moving ahead would have risked too much, such as damaged relationships with partners, in addition to dealing with a lengthy legal battle.

Thomas O. Barnett, Assistant Attorney General in charge of the US Department of Justice’s Antitrust Division put out a statement saying:

“The companies’ decision to abandon their agreement eliminates the competitive concerns identified during our investigation and eliminates the need to file an enforcement action. The arrangement likely would have denied consumers the benefits of competition — lower prices, better service and greater innovation.”

The US Department of Justice published a press release regarding the abandonment of the Yahoo!-Google deal on their website. Read it here:

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One Response to “Google Calls it Quits with Yahoo!”

  1. Alissa Ruehl Says:

    I was really impressed with the level of explanation in Google’s blog post about this issue. Clear communication like this is good for advertisers, and good for stockholders!

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