Yahoo Faces More Challenges Over Google Deal

Yahoo Inc and Google Inc have sparked protests in their exclusive deal to share AdSense revenues. The two companies agreed to display Google Ads on Yahoo’s search results.

The World Federation of Advertisers want the deal to be stopped. They allege that the alliance will cost advertisers more. The WFA fears that the proposed advertising deal will have a detrimental effect on competition. The group also warns that the two companies will increase ad pricing and reduce the options available to global advertisers.

“Although Google and Yahoo insist this agreement is limited to North America, WFA believes that the effects will be global. One reason for this is that the substantial benefits for both parties in the US and Canada will almost certainly reduce their incentive to compete in other markets as they do today,” said the WFA in a statement.

Google and Yahoo have faced scrutiny since the proposal was made. The deal is currently under review by the Justice Department for antitrust issues.

If the deal is passed, it will allow the Yahoo display Google advertisements on some results for search queries. The two companies will then split the revenues.

Google president Tim Armstrong has defended the deal, stating that advertisements will only appear in North American research queries.