CanadaNews’ Reporter Notes

Here in the United States, regulators are being urged to look into potential online advertising and search partnership between Google and Yahoo.

Those that are requesting the investigation is a coalition of 16 American civil rights and rural advocacy bodies.  Eventhough no firm deal has been met/announced, the coalition is still worried of the two internet giants.  This issue can hurt many people during a mega merger.

The Black Leadership Forum, a creative and coordinated organisation striving for more leadership, is especially worried about the merger.  Other agencies are also concerned.  And even the Department of Justice is examining a trial both companies testified in during an April proceeding.

It has been widely reported that it [Justice Department] is looking into the anti-trust implications of last month’s two-week test.

No one in the department has a comment on the coalition’s demands.  This is because there is no definitive agreement between Yahoo and Google at the moment.

Behind closed doors, the two mega companies are attempting to hammer out intricacies of a future potential advertising and search agreement, and are sharing their plans with antitrust regulators.

Last Thursday, Google had a shareholders meeting.  In a phone conversation with Google Chairman Eric Schmidt, he said, “If there were a deal [with Yahoo], we would anticipate structuring the deal to address the anti-trust concerns that have been widely discussed.”

It could be believed that this ‘assurance’ is not good enough for the coalition.  I should mention that this coalition is made up of the League of Rural Voters, the National Black Chamber of Commerce and the American Agriculture Movement.

It also includes the Black Leadership Forum, an umbrella group of 36 civil rights organisations including the NAACP and the National Urban League.

In a letter to Assistant Attorney General Thoma Barnett, head of the Department of Justice’s anti-trust division, the coalition argues that such a deal would give Google almost 90% of the search advertising market and strengthen its influence over internet users’ access to information.

The coalition says of such large partnerships is never positive and would [for the black community], condense competition, increase prices and limit new business opportunity on the internet.

The coalition also wants the U.S. government to give this potential merger very strong consideration - and deep investigation.

The coalition’s director says,  “Google has already exhibited a pattern of violating privacy, engaging in anti-competitive conduct and using its monopoly power in the search market to drive internet users to its affiliated services and its viewpoints on policy matters.

“Any joint combination with Yahoo could dramatically worsen these problems.”

The Centre for Digital Democracy, a consumer advocacy group, is also willing to push regulators to block any deal and wants European consumer groups to raise concerns with European Union officials.

“You can’t allow Google to operate a portion of its leading competitor out of its back pocket,” Jeffrey Chester executive director of the CDD told the Associated Press.

Google has been somewhat cooperative, while Yahoo personnel has given no response.