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Google Inc has decided to postpone its advertising deal with Yahoo Inc so as to provide U.S. antitrust regulators more time to review the deal. The agreement has been delayed for a period of three months. By that time, the regulators will examine whether the alliance of two IT majors affects the competition. As per the advertising deal, Google is allowed to display advertisements next to Yahoo's search results.
This mutual agreement between Google and Yahoo came under the scanner as many advertisers feared that together both the companies will capture more than 80 per cent of the rapidly growing U.S. market for search advertising. The prime protestor is Microsoft Corp. The No. 3 player in Web search, Microsoft feels that if Google and Yahoo start to operate together than it will suffer massive loss in terms of search advertising.
However, Google has issued a statement that it can not wait much and will proceed with its operation even before the Justice Department concludes its review. Besides the advertisers, many critics are also against the deal. They feel that after deal the two companies will have complete monopoly over the search advertising field.
