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DoJ Investigates Google-Yahoo Test

  • Reuters, Thursday, April 24, 2008 11:30 AM
Google and Yahoo claim they notified The Department of Justice about their two-week search test, but nevertheless, the DoJ is investigating the trial's antitrust implications. Why? Because the companies consider this test a prelude to a larger search advertising deal, one that many critics think would have an impossible time passing regulatory scrutiny. It appears they would be right, too, judging by how quickly authorities pounced on the two-week test.

One source tells Reuters that some of the government's concern focused on a telephone call from Google chief Eric Schmidt to Yahoo founder and CEO Jerry Yang to offer help in thwarting Microsoft's $44.6 billion offer. Another source claims the Justice Department is more concerned about a longer-term deal between the companies.

However, both Google and Yahoo claim they informed authorities about the test. "We informed the Justice Department before we launched this test and we have been responsive to their questions about it," Google spokesman Adam Kovacevich said. Yahoo spokeswoman Tracy Schmaler added "Yahoo proactively kept the Department of Justice informed of its intentions to conduct this limited test with Google and have provided information to DOJ on the nature of the test."

Read the whole story at Reuters »

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