Google and Yahoo have entered into an ad agreement which is under Congressional review in Washington D.C. You must understand that our Congress has nothing better to do with their time than investigate Google and Yahoo. Never mind banks going under, inflation taking off, high gas prices, homes being foreclosed upon and so forth. Congress wants to make sure that Google doesn’t become an advertising monopoly which would…….. I don’t know exactly what would happen. Though it might piss off Microsoft. 🙂

So Google is trying to defend their position and wants us to know what they are trying to accomplish and how good it will be for all of us. On their blog site it states:

Because of its founding principles of openness and interoperability, the Internet is an extraordinarily competitive environment, where competition and choice are only a click away. Our advertising agreement with Yahoo! will maintain and expand that competition. Among the key points David will make today are:

  • This agreement will be good for Internet users (who will see ads that are better targeted to their interests); advertisers (whose ads will be better matched to users’ interests, allowing them to reach potential customers more efficiently), and website publishers (who will see increased revenue from better-matched ads on their websites).
  • Google and Yahoo! will remain vigorous competitors, and that competition will help fuel innovation that is good for users and the economy. As we’ve said before, commercial arrangements between competitors are commonplace in many industries. Antitrust regulators in the US have recognized that consumers can benefit form these arrangements, especially when one company has technical expertise that enables another company to improve the quality of its products.

Our agreement will not increase Google’s share of search traffic, because Yahoo will continue to run its own search engine and compete in online search.

  • We’re particularly excited that as part of the agreement, Yahoo! will make its instant messaging network interoperable with Google’s. This will mean easier and broader communication among a growing number of IM users, and enable users to choose among competing IM providers based on the merits and features of the services.
  • We have taken a number of steps in the Yahoo! agreement to protect user privacy. As Google supplies ads to Yahoo! and its partners, personally identifiable information of individual Internet users will not be shared between the companies. Yahoo! will anonymize the IP address of a searcher’s computer before passing a search request to Google.

Though I understand the need for investigating companies that wish to merge and share some of their expertise with each other, my concern is that Congress at this time should be using their energies for more pressing problems. Whether Google and Yahoo working together is good or not, it is not going to lower food nor gas prices.

What do you think?

Comments welcome.

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