Justice Examining Google-Yahoo! 'Test'
SAN FRANCISCO - The Justice Department is reportedly looking into antitrust implications of
Yahoo!'s
(YHOO)
decision to outsource some of its online ads in the U.S. to
(GOOG) - Get Report
.
The Justice Department is concerned that a two-week test run that Yahoo! initiated with Google may violate antitrust law, according to
Reuters
.
The test run is part of Yahoo!'s attempt to find a strategic alternative to an unsolicited takeover bid by
Microsoft
(MSFT) - Get Report
.
An unnamed source told
Reuters
that the government is particularly concerned about a phone call from Google's Chief Executive Eric Schmidt to Yahoo's CEO Jerry Yang, in which he offered his help in dodging a Microsoft merger.
Antitrust concerns about a relationship between Google and Yahoo! have existed ever since rumors about the possibility came to the surface. Many observers have maintained that a deal between the two wouldn't fly because of Google's dominance in the search market.
Yahoo! has been scrambling to find alternatives to the Microsoft merger, including engaging in talks with
Time Warner's
(TWX)
AOL division as well as
News Corp.
(NWS) - Get Report
.
Shares of Yahoo! closed Wednesday down 46 cents, or 1.6%, to $28.08.