Congress explores Yahoo-Google antitrust questions
Congress is wading into the ongoing struggle over the future of Yahoo Inc.
Both the House and Senate Judiciary Committees were holding hearings Tuesday into whether Yahoo's advertising partnership with Google Inc. raises antitrust concerns. Yahoo made the deal as an alternative to the $47.5 billion acquisition offer it rejected from Microsoft Corp. — a decision that now has Yahoo in a tough fight with shareholders.
At the Senate hearing in the morning, Microsoft attorney Brad Smith argued that the Yahoo-Google ad partnership would reduce competition and raise prices. Yahoo and Google representatives countered by saying consumers would benefit — because the companies' joint ad system would let Internet advertisers better target their pitches.
The House hearing is being held this afternoon.
Source: AP
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