Numerous news outlets are reporting that Google and Yahoo are in talks with the U.S. Justice Department in an effort to head off an antitrust challenge to their proposed advertising agreement.

Several advertisers and Microsoft have raised objections to the deal. It is feared that the partnership will limit competition, raise prices and reduce choices in the web advertising industry.

In the agreement Google will supply Yahoo with its own adverts to run alongside Yahoo.com web searches.

It is rumored that Microsoft is rallying hard to fight the deal which would significantly dent its own adCenter offerings.

Both Google and Yahoo have agreed to delay implementing the deal until 22nd October to give federal and state antitrust officials time to complete their separate investigations.

Posted: Oct 15, 2008 11:16 am