Google ends search ad deal with Yahoo!
Search Engines
06 November 2008
Google has pulled out of its pay-per-click advertising agreement with rival search engine Yahoo!.
The agreement would have seen Google's ads appear next to Yahoo!'s natural search listings for specific terms in the US and Canada.
Formed in June, the deal has been postponed several times as regulators sought to allay concerns over competition and ad prices.
However, Google has now decided to avoid a court battle by backing out of the agreement altogether, despite a request from Yahoo! to consider amending the terms of the agreement to resolve the US department of justice's concerns.
"After four months of review, including discussions of various possible changes to the agreement, it's clear that government regulators and some advertisers continue to have concerns about the agreement," chief legal officer David Drummond said on the Official Google Blog.
Yahoo! said it was "disappointed" with Google's decision. Shortly after the announcement, Yahoo! chief executive Jerry Yang was reported to have told a journalist that Microsoft should buy his company, the AFP reports.
Microsoft launched a takeover bid for Yahoo! earlier this year but was rejected several times, leading it to put out a statement saying that it is no longer interested in the firm.
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