Google Ad Deal Is Under Scrutiny

Washington Post Staff Writer Wednesday, July 2, 2008 The Justice Department has opened a formal antitrust investigation into a deal struck last month that would allow Internet titan Google to provide some search advertising for Yahoo, according to sources familiar with the inquiry. Investigators are planning to demand documents not only from Google and Yahoo, but also from other large companies in

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Peter Whoriskey notes, "But critics and competitors of Google -- chief among them Microsoft -- have argued that the deal will limit choices for advertisers and render Yahoo less likely to compete against Google."

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Peter Whoriskey cites Yahoo:""There is nothing unexpected in the review of this arrangement as structured by the parties and Department of Justice officials," Yahoo said in a statement, expressing confidence that the deal would be good for competition."