Potential Google Paid Search Deal With Yahoo Faces Anti-Trust Scrutiny

The NY Times covers the issue of whether Google’s potential paid search deal with Yahoo can survive anti-trust scrutiny. The bottom line involves analysis of how the deal might impact the marketplace and whether it would reduce competition and lead to higher prices for search marketers.

Google steadfastly says no, argues that in an auction it cannot control pricing and makes analogies to other industries and companies that both cooperate and compete. Anti-trust experts quoted in the piece, however, speculate about whether the deal might potentially weaken Yahoo over the long term and minimize competition in paid search. The fear is that Yahoo gradually just turns over its paid search platform and inventory to Google monetization, diminishing its ability to serve as a credible alternative and competitor in the paid search marketplace, longer term.

Some SEMs have expressed enthusiasm for this proposition because of perceived efficiency. Indeed, monopolies can be efficient but concentrating too much power in a single entity tends to distort the marketplace and eventually corrupt the monopoly entity itself.

Related Topics: Channel: SEM | Google: Legal | Google: Partnerships | Legal: General | Yahoo: Partnerships | Yahoo: Search Ads

Sponsored


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

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