There have been so many controversies related to the Yahoo-Google deal that it appeared to be heading towards a pit fall. It began with Microsoft ranting over it in the senate to the Department of Justice taking serious measures to do anything to prevent it from happening. The current news comes with the World Association of Newspapers citing concern and not being happy with it.
WAN has asked the US Department of Justice, EU, and Competition Bureau of Canada to eradicate any chances of the deal shaping up in any way.
The only one that would bee satisfied with this latest action would be Microsoft, for it had been eyeing to avenge itself after its deal with Yahoo failed. On the other end both Google and specially Yahoo have the toughest task at facing the accusers. There have been tough words from the President Gavin O’Reilly who cited concerns over the deal weakening competition in the Search-ad market:
Competition forces each company to offer the best possible terms and helps ensure that newspapers earn a fair market return for the right to display ads and search boxes on their sites. The proposed advertising deal between Google and Yahoo would seriously weaken that competition, resulting in less revenues and higher prices for our members.
He also put up fears of bids for Yahoo ad business suffering tremendously at the hands of Google’s monopoly and its rates being lower than what they are today:
Advertisers will increasingly migrate to Google since they will see diminishing price advantages to advertising through Yahoo. Google has refused to allow Yahoo to show Google ads on the websites of new publishing partners it acquires after the deal is finalized - in other words, Google has imposed a condition that impedes one of Yahoo’s last remaining opportunities to compete with Google.
Although both Google and Yahoo had agreed upon the proposed anti trust 100-day review, Google earlier talked about putting the accelerator on the deal by October. Whatever the case turns out to be, it appears Google faces an uphill task and possibly many a mouths draining off a good amount of cash from its legal fights.
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