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July 14, 2008

States Join DOJ in Google/Yahoo Probe

Connecticut and Florida are among "about a dozen states" reviewing the recent Google/Yahoo search ad deal, according to a recent Washington Post story.

They're concerned that the partnership is anti-competitive.

"If their agreement is a substantial one in its impact on services or costs, it could have a huge impact on competition. It could be hugely anti-competitive," Connecticut Attorney General Richard Blumenthal told the paper. Florida's AG Office said the state is working with other AG offices in its review.

The Department of Justice has already begun its investigation of the deal

State governments would have a vested interest if companies based in their states could be affected by Google and Yahoo working together on search advertising.

Microsoft is against Yahoo and Google partnering for a number of reasons: It bolsters their share of the search market and strengthens Yahoo in Microsoft's fight for the firm. Although it's not clear that Microsoft is out there lobbying state governments to poke their noses in the Google/Yahoo deal, it wouldn't be surprising if the company has prodded states to look into it.

Posted by Kate Kaye at July 14, 2008 12:24 PM

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