Washington - Google (NASD: GOOG) and Yahoo (NASD: YHOO) are engaged in discussions with the U.S. Justice Dept. on their proposed online advertising partnership, with the aim of overcoming any potential antitrust issues, The Wall Street Journal reported. Both the Justice Dept. and a range of other investigators are examining the deal, whereby Google would supply paid search ads against Yahoo search results.

A major group of advertisers has criticized the deal as handing too much control over the Internet advertising market to Google.

While the two companies said they would delay the deal for three and a half months to allow time for antitrust reviews, they have said they hope to launch the search ad partnership later this month.

A source familiar with Yahoo told CNET News.com that Yahoo has also proposed that the deal be subject to a review process similar to the merger regulations laid out in the Hart-Scott-Rodino Act.

Related Links:
http://online.wsj.com/article/SB122393254528030085.html

http://news.cnet.com/8301-1023_3-10065192-93.html

http://snipurl.com/4d3mg (DMW previous coverage)

http://snipurl.com/4d3mu (DMW previous coverage)