Google, Yahoo Seek to Avoid Antitrust Suit Over Ad Deal

Apparently, Google and Yahoo are in talks with the Justice Department in an effort to head off an antitrust challenge to their proposed advertising agreement. The settlement negotiations are at an early stage and it isn't clear whether they will resolve US objections or be acceptable to the two companies. In the settlement talks with the government, both companies have discussed concessions. These include capping the volume of Google ads Yahoo would use, assurances that Yahoo would continue to compete in search ads, and a reporting mechanism to ensure compliance. US officials hope to impose measures that will ensure that prices advertisers must pay don't rise significantly after the deal. Reworking the deal to include a reporting mechanism, could require the companies to disclose more about the mechanics of their closely-guarded search-advertising technology than they want to. And caps on how many Google-sold ads Yahoo can display could limit Yahoo's financial gains from the agreement.