Friday, November 7, 2008

Google backs down


Internet search engine giant Google has backed out of its advertising agreement with Yahoo after the Department of Justice said that it would sue to halt the deal. The Justice Department argued that this deal would make the two giants 'collaborators rather than competitors'. It was also argued that this deal would have given Google too much control over the online advertising market.

Now it is understandable that this would not have been a good thing, one company controlling pretty much all online advertising would never be good. However, is it right for the Justice Department to step in and try to stop this deal? Would this deal have not had some good advantages for the many users of these search engines?

OK, it is probably for the best that the Justice Department did step in and take action, it did prevent Google from having a major portion of the online advertising. Yet it can be argued that one of the main points that the Justice Department made, the fact that the two companies would be 'collaborators rather than competitors', is wrong in some cases. Google is light-years ahead of Yahoo in every way, shape and form. One could really not call them competitors because Yahoo is no real competition for Google.

Image: http://www.maximumpc.com/files/u46168/google-yahoo.jpg
Article: Google withdraws from Yahoo deal

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