Google Pulls Out of Yahoo Ad Deal
Due to regulatory and antitrust concerns, Google inc. has
finally decided to pull out of their much discussed advertising deal with
David Drummond, Chief
legal officer at Google said in a blog post yesterday that "After
four months of review, including discussions of various possible changes to the
agreement, it’s clear that government regulators and some advertisers continue
to have concerns about the agreement,"
It seems Yahoo is very disappointed in Google’s decision.
"Yahoo! continues to believe in the benefits of the agreement and is
disappointed that Google has elected to withdraw from the agreement rather than
defend it in court," a Yahoo spokesman said in a separate statement.
Google and Yahoo combined currently control over 80 percent
of the U.S. search advertising market. Many people believed that the deal would
have enabled them to slowly raise their prices.