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Calif. to DOJ: Blocking the Goohoo Deal Could "Stifle" Innovation


Eleven members of the Northern California Congressional delegation have signed a letter warning the U.S. Department of Justice that "growth and innovation could be stifled" if it blocks the proposed cooperative advertising agreement between Yahoo and Google.

The deal between Google and Yahoo has been criticized because Google dominates the market for search engine advertising and Yahoo is its nearest competitor. Opponents fear the union of the two could help create a Google monopoly.

But the legislators said it is unlikely that a monopoly could arise because of the deal.

"The competitive and disruptive nature of the Internet makes it extraordinarily difficult for any company to dominate," they wrote.

The signers: Anna Eshoo(D), Zoe Lofgren(D), Ellen Tauscher(D), Sam Farr (D), Mike Thompson(D), Mike Honda(D) , Doris Matsui(D), Jackie Speier(D), George Miller(D), Lynn Woolsey(D), Barbara Lee (D).

By Peter Whoriskey  |  September 29, 2008; 6:32 PM ET
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