Department of Justice hires antitrust expert in Google/Yahoo probe

The Department of Justice has hired a high-profile antitrust attorney to help it review, and possibly challenge, Yahoo's agreement to outsource part of its search advertising business to Google, The Wall Street Journal reported Tuesday.

The retaining of former Walt Disney Vice Chairman Sanford Litvack is a sign that the DOJ may be readying an antitrust lawsuit to block the deal between Yahoo and Google, which would give them control over 80 percent of search ads in the U.S., according to the newspaper.

The DOJ has been taking depositions from witnesses and requesting documents via subpoenas for weeks as it mulls challenging the Google/Yahoo deal in court, the Journal reported, based on information from anonymous sources familiar with the issue.

A DOJ spokeswoman declined to comment about the article.

Google said in a statement that it delayed implementing the agreement precisely to give the DOJ a chance to understand that the Yahoo deal "is beneficial to competition." Conversations between Google and the DOJ continue, Google said, adding that it doesn't plan to discuss details of the regulatory process.

"While there has been a lot of speculation about this agreement's potential impact on advertisers or ad prices, we think it would be premature for regulators to halt the agreement before we implement it and everyone can judge the actual impact," Google's statement reads.

Meanwhile, Yahoo also said in a statement that it has been in "constant and productive" conversations with the DOJ and that it knows that the DOJ is seeking advice from an outside consultant. "We remain confident that the deal is lawful and that when the federal and state regulators with whom we have been working see it in action, they will find it to be pro-competitive and good for the marketplace," Yahoo's statement reads.

According to the Journal, Litvack has been hired to examine the gathered evidence and architect the lawsuit if the DOJ decides to challenge the Google/Yahoo deal in court. The DOJ may opt to even take a broader tack and sue over Google's online advertising position, the Journal reported.

Google and Yahoo signed their controversial agreement in June and said they would delay its activation for up to three and a half months to give the DOJ a chance to review it. The nonexclusive deal lets Yahoo run Google ads with Yahoo's search results and on some Yahoo Web sites in the U.S. and Canada.

Yahoo, a distant second to Google in search engine usage and advertising, argued that the deal will allow it to improve its competitive position in this market. However, critics view the deal as a further sign of Yahoo's weakness in search advertising and as a vehicle for Google to strengthen even more its already dominant position.

Sign up for ITworld's Daily newsletter
Follow ITworld on Twitter @IT_world

• Email
• Print
• Share
  • Slashdot
  • Digg
  • Stumble
  • Reddit
  • Newsvine