Thursday, April 24, 2008

Justice Department Investigating Yahoo-Google Ad Test

U.S. Justice Department is investigating possible antitrust implications of Google's two-week search test with Yahoo, a source who was told of the matter told Reuters on Wednesday.
The Justice Department is concerned that the test may violate antitrust law, the source said, adding that authorities "have initiated an investigation" of it. If combined, Google, the top search engine with 63 percent of searches, and Yahoo, number two with 17 percent, would have 80 percent of the market, according to ratings company Hitwise. The source, who spoke on condition of anonymity, said that some of the government's concern focused on a telephone call from Google Chief Executive Eric Schmidt to Yahoo Chief Executive Jerry Yang to offer help in thwarting Microsoft's $44.6 billion bid.

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