Yahoo Stumps DC to Clear Way for Ad Deal With Google

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Yahoo Stumps DC to Clear Way for Ad Deal With Google
By Roy Mark
2008-06-21

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Yahoo CEO Jerry Yang visited lawmakers to help reassure them that the Yahoo/Google advertising deal is good for consumers and the online ad market.

Yahoo CEO Jerry Yang made an obligatory round of Capitol Hill this week, assuring lawmakers there are no antitrust flies on Yahoo's advertising deal with Google. While the arrangement does not require government approval, both Yahoo and Google are working Congress hard to allay concerns about consumer privacy and competition in the Internet advertising industry.

Google and Yahoo announced June 12 they had reached a nonexclusive deal to run Google's search and contextual advertising technology through its AdSense for Search and AdSense for Content advertising programs on the Yahoo search engine. Yahoo expects to generate between $250 million and $450 million in operating cash flow during the first 12 months of the four-year deal.

The arrangement raised the immediate concern of antitrust lawmakers in Congress. U.S. Sen. Herb Kohl, D-Wisc., chairman of the Senate Antitrust Subcommittee, said his panel would be scrutinizing the deal. The House is also planning hearings for later this summer about the deal.

Yang met with Kohl June 18 to discuss the deal. He also met with U.S. Rep. Ed Markey, chairman of the House Subcommittee on Telecommunications and the Internet.

Read the rest of this article on eWEEK.com.

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