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It is widely known that Google pulled the plug on the search advertising deal with Yahoo only because it appeared that it would face a regulatory challenge. However, it emerged on Wednesday just how close the company came to facing an antitrust suit from the U.S. Department of Justice.
Looks like they were forced out of the deal after all.
Google Inc. and Yahoo! Inc. called off their joint advertising agreement just three hours before the Department of Justice planned to file antitrust charges to block the pact, according to the lawyer who would have been lead counsel for the government.
[edited by: Brett_Tabke at 4:24 pm (utc) on Dec. 4, 2008]
[edit reason] added link to source. [/edit]
G still enjoys public affection. It would be seriously bad for them to lose this publically annointed halo. MS never cared what people thought of them- as long as people BOUGHT their product, by hook or by crook
It would have ended up also alleging that Google had a monopoly and that [the advertising pact] would have furthered their monopoly," Litvack says
Hmmm. Google had already reached monopoly status without this deal.
That seems like the real news/reason here to me.