Google Faces Possible Anti-Cartel Investigation - Analysts Weigh In
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Exactly what the long term significance of all this will be is hard to determine at this point. Some observers are suggesting the importance of Litvack's appointment is being overstated, and that the Litvack himself is unlikely to recommend proceeding with litigation without weighing the evidence carefully.
Center for Digital Democracy executive director Jeffrey Chester, for example, is on record as saying that "The Justice Department is looking for political cover one way or the other," the implication being that the Department's motivation is to make sure that whatever decision it finally reaches is seen to be above board. Which is not to say that Chester approves of the deal: on the contrary, he believes that Yahoo's very future is in fact endangered by it, pointing out that "when an online ad company dismantles (or turns over) a core part of its search function to its leading competitor, it becomes fatally wounded."
Chester is also troubled by the privacy implications, expressing concern over Armstrong's reassurances that neither Google nor Yahoo will make personally identifiable date available to the other. Armstrong, he argues, significantly fails to mention the array of additional information, such as cookies and IP addresses, that could be used to compromise privacy. It may well be that Chester is overstating the case, but further reassurances from Google on this would not be unwelcome in the current climate of concern over its policies and intentions.
An altogether more positive view of the arrangement has been taken by some analysts. Randall Stross of the New York Times regards it as a positive development, with an expected $800 million annual increase in revenue only likely to strengthen Yahoo. It's hard to argue with those kind of sums, especially when you consider that on top of the extra income Yahoo will almost certainly gain access to new advertising markets.
It's a view supported by David Kenny of Viva Ki, part of the Publicis Groupe, who compares the Yahoo deal to one which has existed for six years between Google and another search rival, Ask.com. It has clearly worked out well for both parties, and has so far managed to escape regulatory attention.
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