When Google and Yahoo announced that Google would serve advertising on underperforming Yahoo keywords in June, the two companies agreed to delay their non-exclusive partnership for three months so the Department of Justice could investigate antitrust implications. But the deadline Google agreed to has passed, and Justice has given no indication it's ready to let the partnership commence.
Where did Google go wrong?
Well, for starters, they haven't cozied up to the mighty farming lobby, while their competitor Microsoft has.
Microsoft has been releasing talking points and lobbying different groups in Washington since the deal was announced (which was very soon after Yahoo rejected Microsoft's own proposed purchase).
Microsoft also paid lobbying firm the Raben Group $30,000 this spring to work against the deal, according to The New York Times. That's how the National Latino Farmers and Ranchers Trade Association came out against the deal.
So why do the Latino Farmers and Ranchers of America oppose the
Google/Yahoo search partnership? Because they use the internet. But also, because their friends in Washington told them to.
“Obviously, we can’t cover all the issues, so we rely on our allies to keep us informed,” said Rudy Arredondo, the chief executive of the Latino Farmers and Ranchers.
Google has also been in Washington trying to win supporters for the deal, but they've run into some roadblocks. Namely, they don't do things in the way politicians and lobbyists have grown accustomed to.
“They’re renowned in this town for not returning phone calls and not showing up to political events,” said one lobbyist.
Microsoft's lobbying instincts have come a long way since it fought its own regulatory battles in the 1990s. Google's direct approach to business has run aground in Washington, especially when the company's CEO announced that the deal would commence in October, regardless of the Justice investigation because "Time is money in our business."
The company has since changed its methods. It has agreed to wait "as long as it takes" for a decision from Justice and is now reaching out to advertisers and other groups to prove the wisdom of the deal.
But will it be enough to get the deal through? Another anonymous lobbyist talking to the Times summed up what happened when Google tried to dictate its schedule to the Justice Department:
