Consumer Groups Protest Possible Yahoo, Google Merger
Posted on: Monday, 12 May 2008, 11:18 CDT
Google’s chairman tried to calm public fear of the implications of a possible deal with Yahoo at a shareholder meeting on Thursday, however that assurance was not good enough for some groups."If there were a deal [with Yahoo], we would anticipate structuring the deal to address the anti-trust concerns that have been widely discussed," said Chairman Eric Schmidt.
However, a coalition made up of 16 civil rights and rural advocacy groups have voiced their distrust of the possible merger.
"We all suffer in such mega mergers," said Gary Flowers of the Black Leadership Forum.
The coalition is made up of the League of Rural Voters, the National Black Chamber of Commerce, the American Agriculture Movement and the Black Leadership Forum—an umbrella group of 36 civil rights organizations including the NAACP and the National Urban League.
The group sent a letter to Thomas Barnett, Assistant Attorney General of the Antitrust Division, United States Department of Justice, claiming that a deal between the two companies would give Google almost 90% of the search advertising market and strengthen its influence over internet users' access to information.
"We face a possible future in which no content could be seamlessly accessed without Google's permission," coalition members wrote, adding that the merger could "condense competition, increase prices and limit new business opportunity on the Internet".
"We believe the government should give this agreement very careful scrutiny," said Niel Ritchie, executive director of the League of Rural Voters .
Mr Flowers said:
"Google has already exhibited a pattern of violating privacy, engaging in anti-competitive conduct and using its monopoly power in the search market to drive internet users to its affiliated services and its viewpoints on policy matters.
"Any joint combination with Yahoo could dramatically worsen these problems."
Another consumer advocacy group, the Centre for Digital Democracy wants European consumer groups to raise concerns with European Union officials.
"You can't allow Google to operate a portion of its leading competitor out of its back pocket," said Jeffrey Chester executive director of the CDD.
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Image Caption: Google Chairman Eric Schmidt
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Source: redOrbit Staff and Wire Reports
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