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11/04/2008 12:17 PM ID: 74532 Permalink   

Yahoo and Google Rework Deal


According to the Wall Street Journal, the deal between Yahoo and Google is far from being scrapped (SN report) and has, in fact, been reworked and resubmitted for review by antitrust regulators in the United States.

The revised proposal sent to the Department of Justice over the weekend reduces the period of the agreement from ten years to two, and places a 25% cap on the amount of revenue Yahoo is allowed to generate using Google ads.

Regulators had criticised the deal, as it would create a monopoly in the online advertising industry and raise advertising prices. Raised prices would essentially cut smaller advertisers out of the race.

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