Association of National Advertisers Oppose Google-Yahoo! Search Deal

Posted Sep 7, 2008

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.