DOJ Looks at AntiTrust Suit against Google

[Discovery]

Top Lawyer Is Selected
As U.S. Mulls Google Suit

Washington -- The Justice Department has quietly hired one of the nation's best-known litigators, former Walt Disney Co. vice chairman Sanford Litvack, for a possible antitrust challenge to Google Inc.'s growing power in advertising.

Mr. Litvack's hiring is the strongest signal yet that the U.S. is preparing to take court action against Google and its search-advertising deal with Yahoo Inc. The two companies combined would account for more than 80% of U.S. online-search ads.

Google shares tumbled 5.5%, or $24.30, to $419.95 in 4 p.m. trading on the Nasdaq Stock Market, while Yahoo shares were up 18 cents to $18.26.

For weeks, U.S. lawyers have been deposing witnesses and issuing subpoenas for documents to support a challenge to the deal, lawyers close to the review said. Such efforts don't always mean a case will be brought, however.

It seems to be all about the Google/Yahoo Deal.

The Wall Street Journal reported Monday that a group of major advertisers complained to the department about the deal. The Association of National Advertisers, which represents major advertisers such as Procter & Gamble Co. and General Motors Corp., warned that the deal could lead to higher prices and limited opportunities for Web advertisers.

Discovery

[abbottsys]

Yes, this should be interesting. I think Google has a stronger position than many think - because the deal is non-exclusive on Yahoo's end.

I can see Yahoo testifying before the DOJ...

"Hey guys, we're trying to run a business by carrying ads from everyone, and you want to dictate which advertisers we sign. That's government intrusion in the private sector, and it's illegal"