Famous and controvercial ad agreement between two web advertising titans, Google and Yahoo, was cancelled. From the very begging of it as the question, many voices said that it will monopolyze web ad market. Such doubts were raised by advertisers and above all - governement regulators.

Last month I wrote about Google and Yahoo negotiating with government the change of the agreement to dissmiss these concerns. Few days ago it looked like the compromise was found - some news services, like SearchEngineLand revealed that the agreement is going to be made on new terms. Main changes were going to be:

• shortened term of agreement (from 10 to 2 years);
• limiting Yahoo share in search ad revenues to 25%;
• opt-out mechanism for users that do not want their ads be displayed on Yahoo sites.

Although everything was going in the right direction Google annouced yesterday that the agreement was cancelled. Main reasons, as we can read, were: fear of the protracted lawsuit and losing relationships with partners, which might have been damaged during the suit.

-mw

Wall Street Journal reported that two leading web-serach companies are negotiating with Justice Department in order to dispel State’s doubts on advertising agreement proposed by G-gle and Y-hoo in June. In WSJ we can find infromation that talks are in early stage and that simultanously preparations to the lawsuit are under way. U.S. has got some concerns about G-gle monopolizing the online advertising market.

Agreement reached in June assumes that Y-hoo will display ads provided by Google beside to Yahoo!’s search results and choose the search terms for which Google paid search results will be displayed. Realization of this agreement would let Y-hoo to improve its financial results, although in fact it does mean that G-gle would pay Y-hoo for increasing its market share.

You can get back to Y-hoo press release and post on Yodel Anecdotal on the agreement and the same at G-gle’s side: press realese and post.

-mw