The controversial online
search
advertising deal between Google and Yahoo has received yet more
opposition from a national trade body.
In a letter to North American and European competition regulators the
World Association of
Newspapers (WAN) said that the deal would have far-reaching,
negative effects on the newspaper industry.
When the Yahoo-Google deal was struck in June the firms said that the tie-up
would be of benefit to both parties and to their customers. Many industry
members, however, have disagreed.
Last week the Association of National Advertisers expressed its opposition in
a
letter
to the US Department of Justice, and now the France-based WAN has
expressed concerns about the competitive elements of the deal.
WAN warned that Google and Yahoo already dominate the advertising market
available to the newspaper industry, and explained that it felt that such a
tie-up would affect it in three ways: less competition in the market, higher
prices, and less revenues.
"WAN believes that the competition that currently exists between Google and
Yahoo is absolutely essential to ensuring that our member titles receive
competitive returns for online advertising on their sites, and for obtaining
competitive prices when they purchase paid search advertising," the organisation
said.
"In our view, the proposed advertising deal between Google and Yahoo would
seriously weaken that competition, resulting in less revenues and higher prices
for our members."
WAN said that regulators should block such a deal, and urged that Yahoo
continue to be Google's main competitor in the online advertising industry.
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