Google presents facts about Yahoo deal

Now that Google's ad-sharing deal with Yahoo! is being scrutinized, not only by the U.S. Department of Justice, but also the European Union, Google is attempting to set the record straight. Tim Armstrong, Google North American President of Advertising and Commerce, has published a list of "facts" about the deal that present Google's case for why the pact will not result in a monopoly or less competition in the online advertising marketplace. While the blog presents Google's view of the deal clearly and concisely, some of its facts are a bit "google-eyed."

For example, the first question says: "Is this agreement bad for competition?" And Google answers with a firm: "Just the opposite." While Google can say it believes that the ad deal will only serve to make Yahoo! a stronger competitor in the online advertising market, that can't be Google's true aim. Google is, after all, just like any business. It's goal is to out-compete its competitors, not give them a hand in beating itself. The end of the answer is especially telling:

"In addition, the agreement is non-exclusive, meaning Yahoo! could make a similar deal with another company."

What other companies could Yahoo! pursue? Microsoft? That seems unlikely at best. Google is far and away the king of online search, and while Yahoo! may be open to partnering with another firm, finding one on par with Google just isn't possible.

The blog sums up Google's argument like this:

"The online advertising space is a competitive environment, and we believe that this agreement only furthers that competition. Consumers will see more relevant ads, advertisers will have new ways to reach customers more efficiently, and website publishers will benefit from our ad matching technology."

And Google will have kept Microsoft from buying Yahoo! while ensuring that Yahoo! is kept under Google's thumb, ad-serving wise. Everyone wins.

• deal
• Google
• market
• monopoloy
• online advertising
• Yahoo