Google, Yahoo Stand Ground On Partnership Benefits

Washington D.C. (AHN) - Technology rivals Google and Yahoo faced House and Senate hearings Tuesday and defended their recently-fused advertising partnership against accusations of antitrust law violations.

Lawmakers questioned the two companies, as well as third industry player Microsoft, on how the deal, in which Google would supply Yahoo with search advertising, would impact the consumers, as well as advertisers.

The hearing raises speculation regarding Google eventually using the deal as a stepping stone towards controlling online advertising. The Justice Department has been set to review the deal, in light of concerns pointing to an eventual monopoly.

A disgruntled Microsoft was more than willing to throw additional accusations at both companies, with the tech giant insisting that the partnership would hand over a total of 90 percent of the search advertising industry to the two companies.

Yahoo executive VP and general counsel Michael J. Callahan rebutted the accusations, insisting that Yahoo's decision to enter into the deal with Google was for the sake of its own investors.

Yahoo and Google's partnership pairs two of the three giants in the online search industry. It leaves Microsoft as the lone competitor to Google, which has been enjoying its reign as the seemingly unflappable frontrunner.