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CNBC.com Yahoo partners with Google |
What if Federal Regulators are busy with other business? No matter.
Schmidt declared this week that it won't delay the launch of its advertising partnership with Yahoo, planned on October 11, even if regulators need more time to figure out if the deal is anti-competitive.
The concern: the two companies control a combined 80 percent of the fast-growing US market for Internet search ads. Microsoft[MSFT
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] (which knows a lot about anti-trust suits), a major advertising organization, and an association representing newspapers worldwide among others, have complained that this partnership will give Google too much pricing power.
The Department of Justice is examining this partnership, hiring a high powered litigator to consult. And the pressure is on-- especially on Yahoo--for this deal to work. This partnership was a pawn in Yahoo's rejection of Microsoft's takeover bid.
If the D.O.J. doesn't end up having a problem with the deal, Google [GOOG
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]and Yahoo[YHOO
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] get to start their mutually beneficial revenue stream early. But things could get messy if they do have a problem.
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