Advertising association opposes Google-Yahoo pact

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It appears that there is still some stiff oposition to the proposed Google Yahoo search pact. Many advertising groups, like The Association of National Advertisers (ANA), are up in arms about the possibility of Google controlling the search market. These groups would much rather see a more competitive search landscape and fear Google raising its prices or trying to otherwise squeeze higher returns from its inventory. There are two things that these groups should certianly keep in mind.

First, Yahoo is in trouble and this may be the only certain path out of low profitability for the company. If Yahoo is forced to pass on this deal then its profitability, and indirectly their ability to innovate, will be adversely affected. This would mean that potentially Yahoo's search market share will dive as Google's increases, thereby creating an even worse scenario than the pact. If Yahoo is allowed to raise the cash from a Google pact, then why not let them. This cash can be used to evolve their search/advertising platform and keep it relevant. Second, Google already has a lion's share of the search market. Yes, this doesn't necessarily mean that they should therefore control it all, however maybe all the alarms are unnecessary.

The Association of National Advertisers (ANA) said Monday its board has registered with the U.S. Department of Justice its opposition to a planned search advertising partnership between Google Inc. and Yahoo Inc.

New York-based association said it sent a letter to Assistant U.S. Attorney General Thomas O. Barnett, citing concerns "that the partnership will likely diminish competition, increase concentration of market power, limit choices currently available and potentially raise prices to advertisers for high quality, affordable search advertising." (source)

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