Google Shelves Proposed Online Ad Partnership With Yahoo

Google has decided to temporarily postpone its proposed online advertising tie-up with Yahoo in order to allow more time to US regulators to understand the possible implications of the deal.

The search giant in a statement explained its decision by saying “As we are still in conversation with the Department of Justice we have agreed to a brief delay in implementing the agreement while those discussions continue.”

The proposed deal between Google and Yahoo had been a cause of a raging controversy with its opponents arguing that this deal will give Google monopoly over the online advertisement market.

In response, both Google and Yahoo have tried to defend the deal by explaining that the proposed tie-up only provides Yahoo the right to place Google Adsense adverts on its own network, without any compulsory obligation.

Many analysts are explaining Google decision to postpone the deal as a fallout of the increased regulatory activity in the United States in the wake of prevailing economic crisis and believe both Google and Yahoo at this moment may want to play safe.