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DOJ Recalibrates Google Arrogance Algorithm

by John Paczkowski
Posted on October 14, 2008 at 3:45 PM PT

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A few weeks back Google wasn’t at all deterred by regulators’ heightened scrutiny of the company’s advertising agreement with Yahoo. It had no plans to delay the deal with its struggling rival, which was to begin this month. “Time is money in our business,” said Google CEO Eric Schmidt. “… While we have been talking to regulators, we don’t know what their position is. We don’t know if they think it’s a good deal or poor deal.”

How quickly things change.

In the face of mounting criticism, the two companies have delayed the deal, which would allow Yahoo (YHOO) to run some search and text ads sold by Google (GOOG). And now they are said to be in talks with the Department of Justice about concessions that could prevent the antitrust lawsuit it’s preparing to block the deal. Among them, some throwaway assurances that Yahoo would continue to compete in search ads and a cap on the number of Google ads Yahoo could use.

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  • Sam Harrison
    google's attitude reminds me of the housing bubble attitude: we're ok, nothing is going to hurt us
  • Mike Kane
    The Google boys played Yang like the fool he is. They really don't care of the deal goes through. If it does, fine. If it doesn't fine. The deal in and of itself was never the focal point from Google's vantage point. They through Yang a lifeline to stay out of MSFT hands, so if it goes through all the better, but they aren't going to risk a full DOJ investigation in exchange for outsourcing Yahoo ads. They win either way since Yahoo is in shambels and it was kept away from MSFT
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About John

John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper. Read more »

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Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.

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