-By Scott Cleland
A Yahoo-Google search outsourcing pact arguably faces even more problems with European antitrust authorities than with the reported U.S. DOJ antitrust investigation, for two reasons:
First, this Yahoo-Google pact represents a horizontal market problem of collusion between leading direct search competitors; this is very different from the recent approval of the Google-DoubleClick merger, which was a vertical merger where DoubleClick was not found to be an actual direct competitor of Google. (Yahoo is universally viewed as one of Google’s top two direct competitors.)
Second, the market facts of search concentration in Europe put Google perilously close to the unofficial definition of a monopoly, which is 90% share of a market.
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