Report: Justice Probes Yahoo!-Google Deal

Google and Yahoo! reached the deal in June, which would allow Yahoo! to outsource some of online ads in the U.S. to its rival and share the revenues. Yahoo! expects the arrangement to generate $800 million annually for the company.

The Association of National Advertisers, which includes Coca-Cola(KO Quote), Procter & Gamble(PG Quote), and General Motors(GM Quote) as members, last week sent a letter to the Justice Department voicing its objections to the deal.

The organization pointed out that the partnership would result in Yahoo! and Google controlling 90% of search advertising inventory, which would likely diminish competition, increase the concentration of market power and potentially raise prices to advertisers for high quality, affordable search advertising.

Shares of Google were up .64% to $422.64 while Yahoo! was down 2.5% to $17.80, a five-year low.