Google to Provide Search Technology to Yahoo! Grows Closer to Search Monopoly
Google announced a partnership with Yahoo! that would give Yahoo! properties access to Google Adsense ads. Yahoo! will still have its Yahoo! Search Marketing ad system and the agreement is non-exclusive, so Yahoo! can potentially integrate other ad networks as well.
Still, the agreement between the two largest search properties on the Internet has some worried about monopolistic practices. Many would have rather seen Yahoo! strike a deal with Microsoft than Google.
Google responded in its press release by stating:
- This is not a merger. Rather, we are merely providing access to our advertising technology to Yahoo! through our AdSense program.
- This does not remove a competitor from the playing field. Yahoo! will remain in the business of search and content advertising, which gives the company a continued incentive to keep improving and innovating. Even during this agreement, Yahoo! can use our technology as much or as little as it chooses.
- This does not prevent Yahoo! from making similar arrangements with others. This arrangement is not exclusive, meaning that Yahoo! could enter into similar arrangements with other companies.
- This does not increase Google’s share of search traffic. Yahoo! will continue to run its own search engine and advertising programs, and the agreement will not increase Google’s share of search traffic.
- This does not let Google raise prices for advertisers. Google does not set the prices manually for ads; rather, advertisers themselves determine prices through an ongoing competitive auction. We have found over years of research that an auction is by far the most efficient way to price search advertising and have no intention of changing that.
Only time will tell if this helps Google get one step closer to a true Monopoly.
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