Association of National Advertisers Oppose Google-Yahoo! Search Deal

The Association of National Advertisers have sent a letter to government regulators regarding the search advertising deal between Google Inc. (NASDAQ:GOOG) and Yahoo! Inc. (NASDAQ:YHOO). The letter sent to Assistant Attorny General Thomas Barnett pointed out that the deal between the two search engine companies will lead to a 90% control of search advertising inventory.

“[Yahoo!] remains steadfast in its belief that this deal — in which prices are determined by advertiser demand-driven auctions, not by collaboration between Yahoo and Google — will strengthen Yahoo’s competitive position…and will help to drive a more robust, higher quality…marketplace for our advertisers,” responded Yahoo! in a statement.

Yahoo! and Google made the deal official in June. Although they are not required to receive regulatory approval, the two companies mutually agreed to delay the process by 3 months in order for anti-trust regulators to review the deal.

Through the deal, Google would provide ads along Yahoo!’s various web properties and share in revenue.

The Association of National Advertisers is a marketing ommunity that includes 400 companies across 9,000 brands that spend about $100 billion in marketing and advertising. Some of the companies associated with ANA include Adobe, AT&T, Autodesk, Best Buy, Canon, DoubleClick (subsidiary of Google), Intel, Legg Mason (major investor in Yahoo!), Microsoft, Time Warner, and Viacom. The full member list is available here.

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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