Advertising Agreement Ends

? When we announced our advertising contract with Yahoo in June we agreed to delay its implementation until October to allow time for what regulators to review the details? Google said on Friday. ? Because we’re still in discussions with the Justice Department, we have accepted a slight delay in the implementation of the agreement while those discussions continue. The agreement, announced at almost the same time that failure of the attempted purchase of Yahoo on the part of Microsoft, Yahoo would allow Google to display ads on search results from Yahoo and some Yahoo sites in the United States and Canada.

Critics have said that the deal would harm competition and lead to higher prices due to Google and Yahoo are the two leading positions in the market for search.

Google argues that prices will remain unchanged, because advertisers pay according to a system of auctions. ? The prices of the ads are not determined by Google or Yahoo? wrote Tim Armstrong, president of advertising and marketing of Google in the United States, in a recent entry on his blog. ? The prices of the ads are determined in an auction where the advertiser pays only what it believes are worth the ads for him.

Google recently released a website arguing why they think that the deal will be good for advertisers.

The Justice Department confirmed that it is conducting an investigation into monopolistic practices.