The Association of National Advertisers has voiced its objection to the proposed Internet search advertising  deal Yahoo and Google initiated in June, in a letter the large trade group sent Sunday to United States Justice Department regulators examining the proposed tie up between the top two search engine firms. The ANA urged regulators to block the partnership because the Yahoo and Google team would "control 90 percent of search advertising inventory," it said in a statement. A Blow To Proposed Yahoo-Google Search Advertising Deal The objection filed by the ANA, one of the biggest advertising trade groups in the U.S. representing some 400 companies including such large firms as General Motors Corp. and Proctor & Gamble, was seen as a blow to Justice Department approval of the proposed Yahoo tie up with Google. The proposed deal, which could extend as long as a decade should all optional renewals take place, would allow the top search engine firm Google to provide ads alongside search results from the second most popular search engine firm Yahoo, as well as on some of its United States and Canada Web properties. Sunday's letter, sent to Assistant Attorney General Thomas Barnett, noted that the such a partnership "will likely diminish competition, increase concentration of market power, limit choices currently available and potentially raise prices to advertisers for high quality, affordable search advertising," according to the group's statement placed on its Web site. The text of the ANA letter has not been made publicly available. The nonexclusive search advertising deal would place ads from Yahoo and Google into online auctions that other firms would be open to take part in - a measure put in place to try to help gain the approval of both U.S. and European Union antitrust regulators. Yahoo And Google Say Concerns Unfounded In June Google said that although the partnership with Yahoo did not require the approval of regulators, it had decided to delay implementation of the plan by up to three and a half months in order to allow the Department of Justice time to review it. Yahoo said Sunday that it "remains steadfast in its belief that this deal [...] will strengthen Yahoo's competitive position," and continued to  view the deal with Google as in the best interests of advertisers, issuing a statement noting the deal would "help to drive a more robust, higher quality [...] marketplace for our advertisers," the Sunnyvale, California-based Web pioneer said. Google responded to the ANA letter of objection noting that "numerous advertisers have recognized that this agreement will help them better match their ads to users' interests, and that ad prices will continue to be set by competitive auction," Google spokesman Adam Kovacevich said in a recent Reuters report. "While some have raised questions about the agreements' potential impact on ad prices, advertisers care far more about getting a good return on their advertising dollar than they do about buying cheap ads that don't bring in customers, and this agreement will clearly help advertisers reach Yahoo users more efficiently," Kovacevich added. Google Plans To Proceed With Deal By Early October Yahoo said in June that the agreement with Google would lift the firm's operating cash flow some $250 million to $450 million during the first year, and that it had the opportunity to bring in as much as $800 million in annual revenue to the firm. Google chairman and chief executive Eric Schmidt said that the decision to place search ads won in highest bidder auctions would not be up to his firm, but would instead be controlled by Yahoo, and in August noted that the search leader would proceed with the partnership by early October. The plan would give Yahoo the ability to choose which search terms Google could supply ads for, and to set the number and placement of all ads sold by Google, which it would then combine with ads that Yahoo sells independently of the deal. If approved, the partnership agreement would expire after four years, with an option to continue it up to ten years with two extension terms of three years each. Association of National Advertisers Objects To Yahoo-Google Search Deal In addition to the Department of Justice, regulators from several states have been reviewing the proposed tie up, including Florida Attorney General Bill McCollum. Although the proposed Yahoo-Google deal has received the endorsement of several large advertising  agencies, the objection from the ANA, whose members spend more than $100 billion in marketing communications and advertising, is likely to ensure further scrutiny by regulators in Europe and Canada already examining the proposal. The ANA opposed Google's purchase of digital advertising giant DoubleClick, a $3.1 deal that eventually won approval in December 2007. The group said that it had come to the "comprehensive, independent analysis" after examining the proposed tie up for over a month, during which it had spoken to both Yahoo and Google over concerns the deal would increase the price of search advertising. Related Links:
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10:05 pm on Sep. 8, 2008 (utc 0)