Yahoo!'s recently announced plan to form an alliance with rival search engine provider Google concerning Google's AdSense for Search service could run into legal problems, experts have warned.Last week, Yahoo! revealed it is set to begin a test of AdSense, which would deliver relevant search ads alongside Yahoo!'s own natural search results.
The move is seen as an attempt by Yahoo! to stave off Microsoft's takeover bid and received immediate criticism from the software and internet giant.
Indeed, according to Microsoft, the deal would consolidate more than 90 per cent of search advertising in Google's hands.
Commenting on the potential deal, Aaron Edlin, a law and economics teacher the University of California in Berkeley, stated that it would draw considerable scrutiny from US and European regulators, Reuters reports.
He said: "The justice department would certainly want to take a serious look at that because it would mean that a firm that would want to take advertisements or to place advertisements [online] would have only one place to go."
Meanwhile, senator Herb Kohl, a Wisconsin Democrat and chair of a Senate antitrust panel, added: "Should there be moves to make this agreement permanent, we will examine it closely in the antitrust subcommittee to ensure that it does not harm competition."
Mr Kohl went on to express reservations about the consolidation of organisations in the internet advertising market - such as Yahoo! and Google - which used to be independent from one another.
