September 9, 2008

US Advertisers Object to Google-Yahoo Alliance

The Association of National Advertisers has objected to the planned internet search advertising alliance between Yahoo and Google.

In a letter to US antitrust regulators the association said the partnership will manage 90% of the advertising inventory and will diminish competition, increase concentration of market power, and potentially raise prices to advertisers for search advertising.

The Association of National Advertisers includes representatives from companies including General Motors, Wal-Mart, Apple, Procter & Gamble, and Anheuser-Busch.

Yahoo expects the partnership to generate approximately $450m in internet advertising sales annually. It plans to display Google ads alongside its own natural search results in the US and Canada. The two companies have voluntarily delayed the implementation of the deal for up to three-and-a-half months until the alliance is cleared by the antitrust regulators.

Google and Yahoo executives have defended the deal by saying that they will compete aggressively in other fields.