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Yahoo, Microsoft Team Up In Search, Ad Partnership To Take On Google

Publication Date: 
July 30, 2009
Source: 
San Jose Mercury News
Author: 
Pete Carey and Brandon Bailey

Antitrust expert Professor Mark Lemley talked to the Merc about a Yahoo/Microsoft deal:

Yahoo and Microsoft announced a complex and ambitious 10-year partnership Wednesday that they say takes advantage of what each company does best so they can focus on their common rival, Google, which dominates the lucrative online advertising industry.

But the initial reviews were lukewarm. Some analysts questioned whether the deal will help Yahoo enough and whether it will threaten the nearly two-thirds of the search advertising market held by Google. And investors panned the deal, sending Yahoo's shares down more than 12 percent.

...

Stanford University law professor Mark Lemley said in an e-mail interview that the deal raises "significant antitrust red flags."

Bush administration officials rejected an earlier proposed partnership by Google and Yahoo last year, he noted, "and the Obama administration has shown a willingness to be much more active in antitrust enforcement than its predecessors."