Google, Yahoo! Seek to Avoid Ad Deal Suit

Google(GOOG Quote) and Yahoo!(YHOO Quote) are in talks with the Justice Department in an effort to head off an antitrust challenge to their proposed advertising agreement, according to a published report.

The negotiations are at an early stage and it isn't clear whether they will resolve government objections or be acceptable to the two companies, lawyers close to the situation said, the Wall Street Journal reports.

Investigators also continue to build a lawsuit to block the deal, worried it would give Google too much power in online advertising. And advertisers have raised objections to the Google-Yahoo! deal, which would align the two largest players in Internet advertising. ...