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Google Negotiating With Justice Department
mikesd81 writes "Cnet reports that to avoid being sued by the US Justice Department, Google is negotiating with them. The Justice Department and a multistate task force are still reviewing the proposal to decide whether to oppose the partnership. Under the non-exclusive partnership Google would supply Yahoo with some search ads, a move that could increase Yahoo search revenue, but that also gives Google even more power in the market. Yahoo expects the 10-year deal to raise revenue by $800 million in its first year and to provide an extra $250 million to $450 million in incremental operating cash flow. Google's share of the US search market reached 71 percent in August, compared with Yahoo's 18.26, according to Hitwise's most recent numbers."
to avoid being sued by the U.S. Justice Department, Google is negotiating with them
Okay, Google has 71% of the search engine market... Which itself makes up what, less than 5% of the total world of advertising?
Oh, boo-hoo, Google can actually tell you how much you have to pay to share their sandbox. Sorry advertisers, but we don't want your "product" in the first place. Go bitch to someone who carres.
And, advertisers-of-the-world (and other search engines), do you know why Google has 71% of the search engine market? Because Google doesn't piss us off with banners and flash ads and hiding sponsored links as results. Get the hint?
Why are Google's competitors opposing the deal?
If conventional wisdom about such big mergers - that they will 'corner' the market and increase prices - is correct, then shouldn't the competitors be happy that their competitor will raise prices and hence drive customers to them?
The obvious conclusion, supported by lots of data for those inclined to look, is that big mergers always increase efficiency and hence reduce prices for the consumer. It is precisely that outcome that terrifies competitors and forces them to rush to government and feign a concern for the well-being of the consumer.
But why should the new megacorp reduce prices if they have no competitors, you ask? This is only possible if you think that the only competitor to, for example an airline, is another airline. That is false. The airlines compete with cars, trains, USPS, the telephone and lately, in my case, with web-conferencing.
So it is with *all* other industries.
Is that really something that needs to be regulated?
But they'll investigate Google after MS cries about fairness?