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Goohoo Delayed To Allow Justice Department More Time To Review

Google and Yahoo will delay the implementation of their joint advertising deal to give anti-trust lawyers at the U.S. Department of Justice more time to review the deal, according to a source close to the negotiations.

The additional delay will be less than a month, said the source who could not be identified because they were not authorized to speak publicly.

When the cooperative agreement was announced on June 12, Google and Yahoo said they would give the U.S. Department of Justice about three and a a half months to review the deal. That time period has lapsed, however, and after meetings with Justice Department officials today, Google and Yahoo lawyers have agreed to delay its implementation.

Under the agreement, Google will provide advertising to run alongside some queries conducted on Yahoo's search engine.

Google and Yahoo said consumers will benefit because Google has a better way of matching relevant advertising to search queries. But critics said the deal would allow the two companies, who rank number one and number two in the booming search advertising industry, to operate as a monopoly.

By Peter Whoriskey  |  October 3, 2008; 5:00 PM ET  | Category:  Peter Whoriskey
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