A couple of days ago Intology.com started a poll about the possibility of anti trust case against Google. Seems like it’s going to be much sooner than expected.
On Tuesday Google’s top executives discussed how they might try to deflect antitrust concerns of a possible ad-sharing deal with rival Yahoo, advising observers to look at the overall ad market.
When Yahoo and Google announced a two-week test under which Yahoo showed a limited number of Google text ads alongside search results, Microsoft raised antitrust concerns. This was also a major factor in talks between Microsoft and Yahoo over possible merger.
According to Google co-founder Sergey Brin at a shareholders meeting:
You are narrowly focused on search advertising.Advertising as a whole is much broader, and Internet advertising is much broader.
He voiced his opinion on the issue of whether Google has a monopoly and whether a deal with a rival would therefore reduce competition.
Google CEO Eric Schmidt was of the view that:
Advertisers always have multiple choices. It makes sense to always use more than one,” added. It’s incorrect to assert there’s lock-in or opportunity for dominance in the ad space. Don’t map computer platform economics to ad economics.
The deal will likely to go ahead next week according to reliable sources although Google declined to comment on it.
Co-founder Larry Page also specifically said Yahoo is “strong” in the display ad market. Google’s money comes mainly from text ads in the form of AdWords, which appear alongside search results, and AdSense, which appear on partners’ Web pages; its acquisition of DoubleClick, though, is designed to improve its display-ad business.
On a question of how the two week test between Yahoo and Google went, Brin replied:
We had a really good dynamic. We were able to implement it quickly. The technology teams got along well. They were able to get the protocols working very easily and able to gain a lot of insights.
Another issue that could come up in antitrust case is whether advertisers benefit or are harmed by the partnership. Page said advertisers contacted him when they saw their ads showing up on Yahoo’s search results and they are really excited about it.
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