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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."
I'm generally wary of monopoly behaviors, but so far, I see nothing monopolistic here. Now, if Google/Yahoo require advertisers who want to run ads on their sites and ad networks to only run on them and nobody else, that's a monopoly practice. It would be equally monpolistic if Google/Yahoo said to a site that wanted to join their ad network "Sure, but you have to sign this agreement that says only Google/Yahoo-networked ads can run on my site". I don't see any such direct allegations though. What am I missing?
RW