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Archived — Google Inc. terminates advertising agreement with Yahoo! Inc. in Canada

OTTAWA, November 5, 2008 — Yahoo! Inc. and Google Inc. have confirmed that they are abandoning a proposed search advertising agreement in Canada, resolving any potential Competition Bureau concerns about the impact of this proposed deal on Internet search advertising in Canada.

The parties' announcement follows a similar decision in the United States, where the U.S. Department of Justice had decided to file an antitrust lawsuit to block the implementation of the agreement.

The proposed deal contained provisions that were potentially uniquely harmful to Canada, as Google was an even more dominant player in Canada than the U.S. The Bureau was reviewing the deal under the Competition Act to ensure that the agreement would not harm competition in Canada.

"The Bureau had concerns about the potential effects of the agreement on advertisers and publishers in Canada," said Sheridan Scott, Commissioner of Competition.

As part of its examination, the Bureau heard from advertisers and publishers who raised issues about the competitive effects of the deal.

In June 2008, Yahoo! and Google announced a non-exclusive partnership under which Yahoo! would outsource some of its search advertising to Google in Canada and the United States.

The Bureau cooperated closely with the U.S. Department of Justice throughout its review as the agreement affected both Canada and the United States.

The Competition Bureau is an independent agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

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