Line of Business
Canadian advertisers call on government to stop Google-Yahoo partnership
Mega merger of Web search firms will eliminate competition and drive online ad prices up, says trade groups.9/9/2008 6:00:00 AM By: Nestor E. Arellano
Canadian advertisers are calling on the government to prevent a proposed Google-Yahoo search partnership, which according to the trade group will potentially destroy competition and drive up online ad prices.
The Association of Canadian Advertisers (ACA), which represents more that 200 national advertisers such as A&P Canada, Bell Canada, Coca Cola Ltd., GM Canada, the Ontario Lotto and Gaming Corp. and other private companies and government agencies, said it will be meeting next week with officials of the Competition Bureau in Ottawa.
Late last month, the Competition Bureau announced it was launching an investigation into the partnership of the two giant search engine firms and how it might affect the Canadian search market.
"We will suggest to the Bureau that this partnership not be allowed to go through or operate as such in Canada," said Bob Reaume, vice-president of policy and research for the ACA.
"…the partnership is not going to be good. It will restrict competition and create a potential monopoly for Google," he added.
Reaume said the partnership will receive a "go signal" if it is found not to be in violation of U.S. anti-trust laws.
"Google is a great company with a very sound technology. It has been good to the advertising industry, but this deal with give it a stranglehold on the search market," he warned.
The ACA executive said some surveys in the U.S. have estimated that keyword ads prices alone could go up by as much as 22 per cent if the partnership is allowed to operate.
2) Fears of ad price hike aired. - page 2
3) Google-Yahoo says better online ads to come. - page 3
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