It didn’t take long for the Yahoo-Google ad management deal to get scrutinized by the Department of Justice.  The deal - allowing a certain allocation of Yahoo!’s ad space to serve Google managed ads - has some in Washington doubting its fairness and contribution to a competitive environment.

Can’t say I’m shocked. I spoke in the past about how consumers and businesses lose when Google nears monopoly status.  I just had no idea it would happen so soon. Everyone knows that Google has been growing disproportionally out of control with their hold on search and content advertising.  Few outside of the media business understand it.  But can any attempt at regulation or breakup at this point really achieve anything? With such a huge amount of means of interacting over the Internet it might be too late.

Regulation if done effectively could set a new precedent. This could be an excellent chance for regulators and federal authorities to make a ruling over Google that can create a competitive environment.  I hate regulation, and prefer for market economics to level the playing field.  In this case there is simply too much out of the control of consumer’s hands.  Seriously, is there enough market force to boycott the two largest names in search - :) ?

In the best case scenario the fact the DOJ is reviewing the case may give an incentive for an adjustment in the market without intervention.  Maybe Google will back down and Yahoo! consider new options for strategic partnerships with other media companies.  Worse case, a poor decision will be handed over by officials who barely understand how the Internet works let alone have the wisdom to see it’s direction in the next few years.