Justice Dept To Investigate Google-Yahoo Deal
Anonymous Oddity writes "The Washington Post is reporting that the Justice Department's investigating the Yahoo-Google advertising deal. Obviously the deal controls a massive portion of the internet advertising market. US Antitrust law isn't entirely intuitive, but it does tend to frown on large deals between companies that operate on the same level if those deals can be interpreted as restrictive of trade."
Considering that both these companies are publicly traded, I think it is more important for those who are investors to consider what is best for them. If the general public thinks it might be hampered by consolidation of two large competitors, than the public should invest en masse and vote against it.
I've always been confused how publicly traded companies can be considered "monopolies" in any situation except where your governments regulate them into becoming monopolies. If you don't like how a company acts, buy some stock and get your friends and family and cohorts to do the same, then go in and work to change it.
Owning a share is owning a voting right, albeit a tiny sliver minority share. But if you want to change things, do it from within, not from outside.
Yahoo is still profitable, but they're losing market share. Why? Because Google does a better job providing their users with services they want. Duh. If Yahoo can't compete, then it's time for liquidation. There are still thousands of search engines out there, so competition will work its magic.
IBM was the monopoly, but they were chopped down by Compaq. Compaq was the monopoly, and they were chopped down by Microsoft. Microsoft was the monopoly, and they were chopped down by Google. Google's the monopoly, and they'll be chopped down by the next 18 year old college drop out startup that implants a realtime search engine in your sunglasses.
I just hope it's as exhaustive as their investigation into the Valerie Plame leak or O.J.'s hunt for the real killer.
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Strange how when Microsoft offered a deal to outright buy Yahoo, DoJ remained silent, but when Yahoo and Google want to team up, they're all over them.
<sarcasm>But there wouldn't be anything shady going on at the Justice Department, oh, no. You can trust those guys.</sarcasm>
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I can't believe this won't happen in some form, even if they have to make some cosmetic changes to make it look better.
That's because Marshall Mathers has been spending his efforts at the **AA's.
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Wrong Shady.
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So people who don't have money to invest will have no say in how the economy is run, even if their life depends on how the economy is run? Great Idea, dude. 80% of the wealth in the country is concentrated in the hands of 20%. And recursively 64% (80% of 80%) of wealth in the hands of 4% (20% of 20%). So these rich people can get together, buy all providers of a service that is crucial for the population and tell rest of them pay an arm and leg for the service as consumers or pay an arm and a leg to buy shares? You are very confused.
The role of the government is to ensure competition. To enable the consumers not investors to vote with their dollars. Truth in labeling laws, truth in advertising laws, fair competition are all essential part of the free markets. Yes, The current top dogs of capitalism will bitch moan and bellyache. But unless we have the second tier dogs snapping at their heels, we all will be screwed dude.
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Why are they "investigating" this when there is a giant monopoly in the operating system and office suite markets? Maybe they should do something about monopolies that have existed for >15 years before looking at google and yahoo, especially when the former actually provides a good product. It's tough to be "overpriced" or "exploitative" when you give away your product for free.
Its = possessive. It's = "it is"
"...but it does tend to frown on large deals between companies that operate on the same level if those deals can be interpreted as restrictive of trade." I don't understand where this alleged harms users. Should I worry that if I search on Yahoo! - something I never do, by the way - I will see the same ads as the identical search would yield on Google? Where does non-competition come into play? Hell, I never read those ads, let alone click on them. Well, maybe that one time, for those herbal penis enlargement pills, but only because I was curious if they could make me even bigger.
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Let me paraphrase that MadMoney guy, hoping not to get it wrong. The merger between Serius and XM radio has gone on for almost two years, and now they also want hearings on internet advertising as a monopoly? They didn't even have one hearing when several huge oil companies merged a few years back. Any push against Yahoo and Google, I bet, can be traced back to some lobbyist (probably from Microsoft).
1. The Bush administration is generally opposed to business regulation, so there's a good question as to why they're changing their tune now.
2. Why did the same folks that are considering blocking GOOG-YHOO had no problem with MSFT-YHOO?
Combine those factors, and it's possible someone threw a chair at the FTC to make sure this potential merger doesn't happen.
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That that Carl guy and msoft are both or singly behind prodding the DOJ to actually review the merger or collaboration deal. If that Carl guy and that other one named Ballmer were not so vociferously after Yahoo!, then I doubt the DOJ would probe or investigate for too long.
Hell, are the DOJ going to investigate InBev? Are they going to investigate Anheuser Busch/Dos Equis?
If Yahoo! and Google strike an arrangement that actually does measurable, sustained, enduring and painful retardation of microsoft, then WE ALL WIN, except for those who don't care that their individual greed are likely to put newer, (fresher ?) players at a disadvantage. In the computer world ms has had a long lucky, thuggery-derived winnings streak, and anything that "market corrects" that affront or compensates for the corporate and moral damage they've done should be encouraged.
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I haven't been following this as closely as I should have, but I do know that Yahoo was resisting the MSFT deal in opposition to many shareholders, and sought out GOOG at least partially to avoid lawsuits. So, either the deal goes through and there's a strong force vs. MSFT or the deal doesn't go through and... IANAL, but I would assume... they have enough to avoid shareholder lawsuits (ie, we tried with GOOG and the gov't said no; why would we assume any different with MSFT?).
Those two companies collectively represent a vast amount of Web consumer traffic, even if they're not actually combined into a single entity. Investigating them should probably be a matter of course, like inspecting a deep, complex mine shaft essential to a nation's infrastructure. Or a large freight rail combine. Or a chain of regional airports throughout, say, the upper plains states, but a lot bigger and more important.
Since the proposed merger will have monopolistic effects on a market with drastically narrowed choices of independent media, it's a good reason to search anyway. If they can find anything else going seriously wrong, now is the time to look.
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Well stated, poorly worded.
Someone mod parent up for insightful.
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Prick.
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