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Thursday, July 03, 2008
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Google-Yahoo Deal Faces Justice Department Review
Tom Claburn
The U.S. Department of Justice has opened a formal investigation into the online advertising deal between Google and Yahoo.

Citing information provided by anonymous sources, the Washington Post reports that Justice Department antitrust investigations plan to seek documents not only from Google and Yahoo, but other large Internet and media companies.

Presumably, one such company is Microsoft, which until recently had been trying to acquire Yahoo. According to a report in The Wall Street Journal on Wednesday, Microsoft is preparing to make a new offer for Yahoo. In the event such an offer is made and accepted, that deal would certainly face an antitrust review, too.

Meanwhile, the Google-Yahoo deal is nonexclusive, meaning that Yahoo is free to enter into similar deals with Microsoft or other companies.

When the deal was announced, Google and Yahoo said they had agreed to delay it for three months to allow the Justice Department time to review the arrangement. It may be that the investigation is nothing more than the government's acceptance of that invitation. Indeed, that's how Google sees it.

But according to the Post, the formal investigation undertaken by the Justice Department represents more significant scrutiny than the sort of pro forma review that the two companies appear to have anticipated.

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Sounding Board: Readers Weigh In
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