You are here Google-Yahoo ad deal would also be a trial balloon testing FTC's antitrust mettle
Submitted by Scott Cleland on Wed, 2008-04-09 18:17
The Wall Street Journal's scoop that Yahoo is considering a two week trial of outsourcing search to Google -- is also a trial balloon testing the FTC's antitrust mettle.
If you don't remember, the last sentence of the FTC's Majority opinion approving the Google-DoubleClick merger was a clear warning to Google:
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"We want to be clear, however, that we will closely watch these markets and, should Google engage in unlawful tying or other anticompetitive conduct, the Commission intends to act quickly."
Let's also put this into context.
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The FTC concluded in their Google-DoubleClick approval just before Christmas, that:
- "...search engines provide a unique opportunity for advertisers to reach potential customers."
- "Google, through its AdWords business, is the dominant provider of sponsored search advertising..."
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Comscore in February has Google's U.S. search market share at 59.2% and Yahoo's at 21.6%.
My view is that Yahoo and Google are bluffing and are attempting a "thread-the-needle" tactical maneuver where they publicly dampen the perception of Microsoft's chances in acquiring Yahoo, without prompting the public or behind-the-scenes antitrust ire of the FTC.
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