WAN, ANA welcome fiasco of Google-Yahoo advertising deal

Google has pulled the plug on a search-ad partnership with Yahoo that raised antitrust concerns and was opposed by both newspaper and advertiser associations.

Under the deal announced in June, Yahoo would have placed Google ads on some Yahoo search results, and the companies would have shared resulting revenue.

As CNET reports, US Justice Department’s antitrust authorities expressed satisfaction that the deal has been dropped, as ”the arrangement likely would have denied consumers the benefits of competition–lower prices, better service and greater innovation.”

The deal was opposed by the World Association of Newspapers and the Association of National Advertisers (USA). Both organisations applauded the news.

Larry Kilman, a spokesman for the World Association of Newspapers, said:

“The proposed deal was anticompetitive and would have given Google too much power over online advertising. It’s clear from the announcement that government competition authorities were receptive to the concerns raised by the advertising and media industries. We’re delighted that Google and Yahoo decided to drop it.”

Bob Liodice, a chief executive of the Association of National Advertisers, said:

“We knew some decision was coming soon and are grateful that the parties agreed to discontinue their agreement. It’s an important step for the industry to move forward…it will stimulate the level of innovation.”

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