Business

IAA Opposes the Google-Yahoo Deal

Google’s search advertising partnership with Yahoo may only affect search advertising in the U.S. and Canada, but that’s not stopping European agencies from voicing their concerns. This week the International Advertising Association sent a letter to the U.S. Department of Justice opposing the partnership. This is in addition to The European Union’s ongoing antitrust investigation […]

Google's search advertising partnership with Yahoo may only affect search advertising in the U.S. and Canada, but that's not stopping European agencies from voicing their concerns.

This week the International Advertising Association sent a letter to the U.S. Department of Justice opposing the partnership. This is in addition to The European Union’s ongoing antitrust investigation into the matter and The World Association of Newspapers opposition to the deal earlier this month.

The advertising group, which represents agencies and media companies in over 76 countries, has written to the US Department of Justice to voice its objections, though it appears that no one has filled them in on what the deal entails. Michael Lee, Executive Director of the IAA, explains in the press release that if this were to create a monopoly (and he's not sure it would), that would be a bad thing:

"We don't know all the specifics of the transaction. However, concerns revolve around the ultimate probability of less competition, an increased pricing landscape, and the fear that such a monopoly could impact innovation. In principle and in practice, monopolistic media control and pricing has not been good for the industry."

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