Yahoo says it's cooperating with DOJ in Google antitrust concern

By Scott M. Fulton, III | Published April 24, 2008, 11:58 AM

Whether US federal officials have serious concerns over the Yahoo/Google beta test remains unclear this morning, though explanations given to the press last night may actually raise more questions than they answer.

The US Department of Justice has yet to issue a comment on, or confirm, a story that first appeared on Reuters wires late yesterday. Initially, it was reported and widely repeated that the DOJ is investigating Yahoo and Google over a test of integrating AdSense ads on Yahoo search pages.

A recent distribution of the Reuters story does not indicate any such investigation is taking place. However, responses from both Yahoo and Google spokespersons, to both Reuters and BetaNews, may be more enlightening than either company would have intended had the "investigation" story not been disseminated.

"We alerted the DOJ of the test before it launched and provided info about it," Yahoo spokesperson Tracy Schmaler told BetaNews this morning. "Yahoo proactively kept the Department of Justice informed of its intention to conduct this limited test with Google and has provided information to DOJ on the nature of the test."

Schmaler's comments would appear to indicate the cooperation was one-way, with Yahoo volunteering information to the DOJ in case it should ever have concerns.

Google has yet to respond to BetaNews inquiry as of 11:45 am EDT this morning; however, its response to Reuters is actually slightly contradictory to the stance Yahoo has been taking. "We informed the Justice Department before we launched this test and we have been responsive to their questions about it," a Google spokesperson is quoted as having told Reuters yesterday.

It's not the spirit of cooperation that's contradictory. Up until now, Google has been completely silent on the matter, letting analysts come to the conclusion that it could very well be a passive partner on the deal. But now the Google spokesperson has injected the phrase, "we launched this test," into the discussion, indicating that it was not only an active partner but a co-engineer of the AdSense test, which is a far deeper relationship than AdSense integration would actually require.

The Google spokesperson also mentions "their questions about it," which presumes the DOJ actually had questions. An inquiry is far less than an investigation, though if the DOJ had questions, then the cooperation was certainly two-way, not one-way as Yahoo suggested.

The current version of the Reuters story this morning now omits any mention of a possible telephone conversation between Yahoo and Google executives prior to the commencement of the test project.

Comments

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Generally, I try to avoid posting to BetaNews, but rarely has an author taken things so out of context. Mind you, I'm no defender of Google. The fact that you "support" open source does not alleviate the fact that you're pretty much in the same position of early 1990s Microsoft (i.e., heading towards monopoly), BUT to say that "We informed the Justice Department before *we* launched this test and we have been responsive to their questions about it" [emphasis added] signifies Google's active involvement is ridiculous.

If Yahoo! informed DOJ they were doing the test, DOJ protocol would be to contact the other party (i.e., Google). Therefore, Google responding "we" doesn't mean in the royal sense, but rather that Yahoo! and it answered DOJ inquiries AFTER Yahoo! told DOJ they were conducting the test.

Somehow extrapolating this to Google necessarily being an active participant that solicited Yahoo! is definitely unethical and bordering on libel if Google wished to pursue it. Of course, Google's past practice in the Yahoo! (and Microsft) affair has been hands off, so the media will read into their non-response to this sensationalized nonsense as Google's silent assent that it did in fact actively entice Yahoo!

The phrase "we launched this test" is part of a larger statement that does not *indicate* anything, and really doesn't imply anything either. Whatever was drawn from the out-of-context phrase was totally inferred by BetNews.

Ridiculous and irresponsible.

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To most Google is seen as the white night, but actually this knight has a sword with the word "dollars" etched on the blade.
Yahoo meantime, just wants to survive and they are IMHO a better search engine, more accurate and just as fast on results.

There will come a time in future I am sure, when Google is no longer the dominant figure in search and a new kid on the block will surface to take the crown, may take a while but I beleive it will come.

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