Last month’s ad deal between Yahoo! and Google has flared the issue of monopolising the search engine market, as the deal is being testified in Congress for violation of ‘Antitrust Law’.
The deal, which allows Google to run advertisements alongside Yahoo’s search results, is under scrutiny by US House of Representatives Judiciary Committee.
Microsoft’s general counsel Brad Smith has accused Jerry Yang, CEO Yahoo Inc., of saying, “internet search market is bipolar, with Google at one pole, and Yahoo! and Microsoft on the other, and with this deal, Microsoft wouldn’t be strong enough to remain as one pole.”
Responding to the statement, Yahoo’s general counsel Michael Callahan have stated that Mr. Yang’s statement have been misinterpreted, and the deal reflects our conscious efforts to remain competent in search business.
As a part of reviewing the proposed search-advertising deal between Yahoo Inc. and Google Inc., the US Department of Justice have already begun issuing subpoenas for information.
The partnership was seen as an effort from Yahoo! to ward-off Microsoft’s attempts of buying its search business.
Google and Yahoo! together enjoys almost 75 percent share in the search engine market, and their partnership would automatically result in market dominance.