Advertiser Trade Group Opposes Google-Yahoo Search Deal

Authored by Mark Hefflinger on September 8, 2008 - 8:14am.

Washington - The Association of National Advertisers (ANA), a trade group of more than 400 companies that collectively spend over $100 billion on marketing and advertising, announced over the weekend that it has sent a letter to the U.S. Department of Justice opposing the search advertising partnership proposed by Google (NASD: GOOG) and Yahoo (NASD: YHOO). ANA members include Disney, IBM, Nokia, Verizon, GE, GM and Wal-Mart.

The ANA said it conducted an independent analysis that included face-to-face discussions with Google and Yahoo, and concluded that "a Google-Yahoo partnership will control 90 percent of search advertising inventory," adding "the partnership will likely diminish competition, increase concentration of market power, limit choices currently available and potentially raise prices to advertisers for high quality, affordable search advertising."

The proposed deal, which the Justice Dept. is currently investigating, would see Google supply ads on Yahoo search pages.

Related Links:
http://www.ana.net/news/content/1388

http://www.ana.net/news/content/1390

http://news.cnet.com/8301-1023_3-10034530-93.html