Google scraps ad deal with Yahoo

New York: Google has scrapped an advertising agreement with Yahoo beacuse of regulatory concerns.
The advertising deal announced in June would have allowed Yahoo to use Google to provide advertisements on its websites and its publisher partners’ sites in the US and Canada.
Google on Wednesday said government regulators and some advertisers continue to raise concerns over the pact with Yahoo.
“Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn’t have been in the long-term interests of Google or our users, so we have decided to end the agreement,” Google said.
Yahoo said it is disappointed with the decision. “Yahoo continues to believe in the benefits of the agreement and is disappointed that Google has elected to withdraw from the agreement rather than defend it in court,” the internet firm said.
Yahoo said Google notified of its refusal to move forward with implementation of the agreement following indication from the Department of Justice that it would seek to block it, despite Yahoo’s proposed revisions to address the DoJ’s concerns.
Google said the company is not going to let the prospect of a lengthy legal battle distract it. “Google’s continued success depends on staying focused on what we do best: creating useful products for our users and partners,” it added. AGENCIES
‘Buy us, Microsoft’
After Google’s decision, Yahoo’s chief executive Jerry Yang said Microsoft should buy his firm despite failed takeover talks earlier this year.
“To this day, I would say the best thing for Microsoft is to buy Yahoo,” Yang said. “Did we want to do the deal? Yes.”
Microsoft has repeatedly said that it is no longer interested in buying the floundering Northern California firm.
The Redmond, Washington-based company issued the statement after Microsoft CEO Steve Ballmer said the business reasons for a Yahoo acquisition still make sense. AGENCIES