Thursday, 06, Nov 2008 09:59
Google has confirmed in a blog post that it is cancelling its search advertising deal with Yahoo! as a result of regulatory issues.
Originally formed in June this year, the agreement was devised to enable the display of Google ads alongside Yahoo! search results for specific terms and was only going to be initially applicable in the US and Canada.
The deal was scheduled to start later this year to allow the authorities time to look over the agreement's implications for the wider industry and was put off several times as regulators required more time to explore various concerns.
Google and Yahoo! recently indicated that they would consider changing the agreement's terms, but instead Google chief legal officer David Drummond said on the official blog that it had decided to call off the deal altogether.
"Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners," he stated.
Yahoo! said it was "disappointed" that Google would rather cancel the agreement than defend it in court.