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“Predatory” Google Under Fire

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May 22, 2008 

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Kathleen  |

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“Predatory” Google Under Fire

ADOTAS – Gobbling up 82% of the advertising search market doesn’t violate anti-trust regulations, why do you ask? Google says a potential search advertising partnership with Yahoo wouldn’t invite an antitrust challenge because the deal would be structured so that it addressed antitrust “concerns” The New York Times reports.

Under the terms of the proposed deal, Google would allow Yahoo to use its technology to deliver ads next to some Yahoo search results. Some estimate the partnership could thrust up to $1 billion a year into Yahoo’s coffers, the Times reports.

The partnership has been likened to deals in the printer industry in which Canon supplies printer engines to 80% of the market, including to rivals like Hewlett-Packard.

But others aren’t buying it: “Up to now, Google has been very careful to avoid predatory behavior,” Christine A. Varney, a partner at the law firm Hogan & Hartson and a former member of the Federal Trade Commission, told the Times. “But a transaction like this, I think, is fundamentally anticompetitive.”

In other Google news, Rep. Joe Barton, a Republican on the Energy and Commerce Committee, has voiced concern to Google chief Eric Schmidt about the company’s privacy practices since acquiring DoubleClick.

Barton stressed the need for transparency and a strict commitment to protecting consumers’ data. In a letter to Schmidt, Barton also asked if Google planned to continue its policy of allowing users to opt-out of ad-serving cookies. He requested a response to his questions and concerns by June 6.

Tags: doubleclick, finance, Google, interactive-advertising, revenue, search-engine-advertising and Yahoo

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