To add to the Microsoft-Yahoo drama, there has been talk of antitrust implications of a possible merger between Google and Yahoo, otherwise known as the "other option". The speculations of this possible merger were launched in full force when Yahoo announced that it would conduct an exploratory two-week trail with Google by outsourcing some of its online ads to Google. The "Wall Street Journal" reported last week that the trial has "yielded positive results", thus signaling to the Department of Justice (DOJ) that there are serious possibilities of a long-term relationship between Google and Yahoo. With Google dominating the online advertising market with approximately 60% share and Yahoo following up with 20%, a merger of the two companies could easily violate US antitrust laws.
The story gets even more interesting. Google CEO Eric Schmidt is under investigation by the US DOJ for anti-trust behavior. Upon Microsoft's unsolicited acquisition bid for Yahoo, Schmidt reportedly contacted Yahoo CEO with questionable motives. The DOJ reports:
… The Justice Department is concerned that the test may violate antitrust law, the source said, adding that authorities “have initiated an investigation” of it … The source, who spoke on condition of anonymity, said that some of the government’s concern focused on a telephone call from Google Chief Executive Eric Schmidt to Yahoo Chief Executive Jerry Yang to offer help in thwarting Microsoft’s $44.6 billion bid.
While Google was able to garner regulators' blessing on their DoubleClick acquisition back in March, it does not seem likely that the antitrust gods are smiling upon them this time. While no decisions have been made as of yet, it'll be interesting to see what happens. Who would of thought that amongst the group of Microsoft, Yahoo, and Google, that Microsoft would be the one left out of the antitrust investigations for once?!
Sources: Reuters, Mashable
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