Thursday, November 06, 2008

DOJ's Antitrust Suit against Google

From today's John Paczkowski's WSJ blog:


... consider the DOJ’s comments Wednesday on Google's proposed advertising partnership with Yahoo"


"Yahoo and Google abandoned their advertising agreement after the Department of Justice informed the companies that it would file an antitrust lawsuit to block the implementation of the agreement. The Department said that, if implemented, the agreement between these two companies accounting for 90 percent or more of each relevant market would likely harm competition in the markets for Internet search advertising and Internet search syndication."


Google abandoned the deal not because pressing ahead with it "risked" a protracted legal battle, but because it guaranteed one. The DOJ was going to sue to block the pact.


"The Department's investigation revealed that Internet search advertising and Internet search syndication are each relevant antitrust markets and that Google is by far the largest provider of such services, with shares of more than 70 percent in both markets."


Internet search advertising and Internet search syndication are "relevant antitrust markets." In other words, they’re natural monopoly businesses.

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