Civic groups urge DOJ probe of possible Google-Yahoo deal

May 9, 2008 (IDG News Service) A group of civic leaders is calling on the U.S. Department of Justice to investigate any potential deal between Google Inc. and Yahoo Inc.

The civic groups, comprised of rural organizations, civil rights leaders, technologists, business advocates and concerned citizens, sent a letter to the DOJ today urging it to investigate the proposed alliance, saying it "threatens to concentrate power on the Internet." They said such a partnership between the two largest search and advertising companies would give Google control over approximately 90% of the search market.

A DOJ spokeswoman said because there is no deal between Google and Yahoo, the department has no comment.

According to published reports, the DOJ has been looking into the antitrust implications of a partnership between Google and Yahoo. Last month, the two companies were engaged in a test whereby Yahoo delivered relevant Web advertising from Google alongside its own search results. However, there has been no news regarding a continuation of that test.

Neither Google nor Yahoo could be reached for comment.

The civic groups have expressed concern that Google "has already exhibited a pattern of violating privacy, engaging in anticompetitive conduct, and using its monopoly power in the search market to drive Internet users to its affiliated services and its viewpoints on policy matters."

The groups, which include the Black Leadership Forum Inc., the Labor Council for Latin American Advancement and the League of Rural Voters, said there will come a day when no one will be able to get any information without Google's permission.

Gary Flowers, executive director and CEO of the Black Leadership Forum, said the effect of large corporate mergers on the black community is hardly ever positive.

He said any proposed Google-Yahoo partnership is no different because doing away with competition would increase prices and limit new Internet business opportunities for members of the black community.

Other spokespersons for minority groups said a deal between Google and Yahoo would not be good for consumers.

"Privacy is a basic [tenet] of American law and culture. Google's Gmail invasions of consumer privacy are the kind of worrisome behavior that you expect when there is no competition in the Internet's gateway," said Gabriela Lemus, executive director of the Labor Council, in a statement. The statement charged that Gmail service has repeatedly violated consumer privacy by scanning the actual text of individual customer e-mails in order to extract information for its advertising.

"We urge you to open an investigation into the current market concentration in online search and to oppose any combinations that would result in undue market concentration," the groups said in the letter.

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