Google & Yahoo Try Again With New Ad Deal

Faced with continuing opposition to their original search ad partnership, Google and Yahoo have changed the terms and submitted a new agreement to the U.S. Justice Department.

According to the Wall Street Journal, the new deal changes the agreement from 10 years to two years and limits the amount of money that Yahoo can collect up to 25% of its search revenue. The new plan also includes an opt-out mechanism for Google advertisers who don’t want their ads to show on Yahoo.

The original Google-Yahoo deal was announced in June and drew immediate concerns over antitrust issues. At that time, Yahoo CEO Jerry Yang said that the two companies didn’t need regulatory approval for this deal because it’s open and non-exclusive. Google’s blog post about the deal went out of its way to dampen any antitrust claims.

That didn’t stop the Justice Department’s Antitrust Subcommittee from investigating the agreement. Last month, the two search engines agreed to delay implementing the deal while the Justice Department continued its investigation. As recently as last week, rumors circulated that Google and Yahoo were preparing to call off the agreement altogether due to Justice Department demands.

More discussion on Techmeme.

Postscript from Greg: While the new deal offers a more limited duration and caps potential Yahoo revenues — so that Yahoo doesn’t become “lazy” and too dependent on Google, presumably — it’s not clear that these changes will satisfy the objections raised by some marketers and trade groups: that Google controls too much of the search marketplace.

We know from talking to Yahoo quite a bit that they’re not complacent about consumer search and are rolling out (and planning) numerous innovations in the coming weeks and months.

I would assume that this new deal explicitly addresses some of the DOJ’s concerns because Google and Yahoo have been in ongoing talks with anti-trust regulators. Thus, on that speculative basis, I would imagine this has a much better shot at being approved. We’ll see.

Related Topics: Channel: Industry | Google & Yahoo Ad Deal | Google: Business Issues | Legal: General | Yahoo: Business Issues | Yahoo: Partnerships

Sponsored


About The Author: is Editor-In-Chief of Search Engine Land. His news career includes time spent in TV, radio, and print journalism. His web career continues to include a small number of SEO and social media consulting clients, as well as regular speaking engagements at marketing events around the U.S. He recently launched a site dedicated to Google Glass called Glass Almanac and also blogs at Small Business Search Marketing. Matt can be found on Twitter at @MattMcGee and/or on Google Plus. You can read Matt's disclosures on his personal blog.

Connect with the author via: Email | Twitter | Google+ | LinkedIn



SearchCap:

Get all the top search stories emailed daily!  

Share

Other ways to share:
 

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. Comments may also be removed if they are posted from anonymous accounts. You can read more about our comments policy here.

Comments are closed.

Get Our News, Everywhere!

Daily Email:

Follow Search Engine Land on Twitter @sengineland Like Search Engine Land on Facebook Follow Search Engine Land on Google+ Get the Search Engine Land Feed Connect with Search Engine Land on LinkedIn Check out our Tumblr! See us on Pinterest

 
 

Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States

Europe

Australia & China

Learn more about: SMX | MarTech


Free Daily Search News Recap!

SearchCap is a once-per-day newsletter update - sign up below and get the news delivered to you!

 


 

Search Engine Land Periodic Table of SEO Success Factors

Get Your Copy
Read The Full SEO Guide