Google vs. The United States of America
Wednesday, September 10, 2008The US Department of Justice has hired a noted antitrust expert to examine Google’s pending take-over of Yahoo!’s paid search advertising program. Slated to start in October, the hail-Mary plan to keep Yahoo!’s assets out of Microsoft’s hands comes into effect. Google AdWords will display some of its ad-inventory over its former competitor’s networks, a move which potentially gives Google over 90% of all search ad-spend.
Several Justice Department lawyers spent the better part of the summer gathering information about the partnership between the two search giants with their efforts intensifying in the weeks following Yahoo!’s annual general meeting in early August.
On Monday, the Justice Department hired veteran anti-trust lawyer Sanford M. Litvack to study the evidence and prepare the case. Litvack was Assistant Attorney General in charge of the DOJ Antitrust Division during the Carter Administration.
Earlier this week, the Association of National Advertisers made a statement asking the Justice Department to stop the partnership. The American Association of Advertising Agencies and the International Advertising Associaton also oppose the deal. The investigation is said to be limited to a narrow focus on the PPC partnership and will not involve other online advertising channels such as display or CPA.
