About a month ago Google and Yahoo announced advertising deal but there is a possibility that the two companies might take the next step by going for a merger. After the forbidden Microsoft-Yahoo deal, Google-Yahoo deal is already under scrutiny and is sure to draw the attention of various anti trust regulators.
Consumer groups are already protesting.
Google’s chairman Eric Schmidt tried to calm public fear of the implications of a possible deal with Yahoo at a shareholder meeting on Thursday by saying:
This assurance was not good enough for some groups however. The US authorities are now being lobbied by a group of civil rights and rural advocacy bodies to investigate the “mega merger” after they have started to realize the implications. A group of 16 organizations are warning that everyone could suffer if the deal between Google and Yahoo is allowed to take place. Gary Flowers of the Black Leadership Forum told BBC News:
He also added:
The coalition is made up of the League of Rural Voters, the National Black Chamber of Commerce, the American Agriculture Movement and the Black Leadership Forum—an umbrella group of 36 civil rights organizations including the NAACP and the National Urban League. |
The impact of a 2 week trial ad-sharing programme that the two companies started a month ago is being watched by the US Justice Department.
The group sent a letter to Thomas Barnett, Assistant Attorney General of the Antitrust Division, United States Department of Justice, claiming that a deal between the two companies would give Google almost 90% of the search advertising market and strengthen its influence over internet users’ access to information.
Another consumer advocacy group, the Centre for Digital Democracy wants European consumer groups to raise concerns with European Union officials.
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