Google and Yahoo seek talks with DoJ

Google and Yahoo are reportedly in talks with the DoJ over a proposed ad-serving deal.

Google and Yahoo are reportedly seeking a deal with the US Department of Justice (DoJ) to skirt antitrust proceedings.

The Wall Street Journal cited lawyers close to the negotiations in reporting that the two companies have entered into meetings with the DoJ in order to negotiate a potential resolution which would quell the antitrust fears raised by some.

However, the paper warned that the talks are still in the early stages, and no details have emerged on how the terms of the deal would be affected.

The deal centres around ads served on Yahoo's search service. The company would allow Google to run a limited number of ads on Yahoo's search pages as part of a deal which would bring Yahoo much-needed revenues in its quest to justify turning down an acquisition offer from Microsoft.

Detractors of the deal, led by Microsoft and other advertising agencies, have complained that it gives Google a dominant position in the market which could allow the company to unfairly manipulate advertising rates.

Google has countered the campaign by contending that the deal will not affect rates and will in fact keep the market more competitive by keeping one of the company's main rivals afloat.