Google and Yahoo! may call off ad tie-up

The advertising partnership between Google and Yahoo! could be called off next month after US and EU government investigators failed to reach agreement over anti-competitive concerns surrounding the ad tie-up.

The deal between the two internet companies, which was meant to commence this month, continues to be investigated by the government investigators indefinitely.

It has been reported that following a meeting with the Department of Justice yesterday (October 30), Google and Yahoo! may decide to walk away from the deal by the middle of next week, unless a last-minute decision is reached.

Both Google and Yahoo! have denied the speculation and say discussions are ongoing.

It is feared that if the partnership does go ahead, Google and Yahoo! would have control of over 80% of the online advertising marketplace in the US, making it almost impossible for other competitors to survive.

Furthermore, if it does go ahead it will not be implemented in the UK as it would breach local competition laws.

The US Department of Justice has been investigating the possible implications of the deal since it was originally agreed in June, but it is yet to rule on the case.

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