Google has finally given up on its proposed search deal with Yahoo!, suspecting that regulators may make the multibillion-dollar partnership untenable. Russia is also proving troublesome for the search giant, but its plans for mobile supremacy have received a much-needed boost.
- Google has walked away from its proposed search partnership with Yahoo!, saying that regulators and some advertisers still have concerns about the deal. David Drummond, senior vice-president at Google, believes the tie-up would have allowed Yahoo! to show more relevant ads for queries that currently generate few or no ads. But Yahoo! insists its results are equal or better than those of its rivals. The question of who is right will now remain unanswered.
- Google has also suffered a setback in its attempt to expand its empire into Russia after the Russian FAS (Federal Antimonopoly Service) vetoed the search giant's proposed takeover of contextual ad service Zao Begun. Rambler Media, majority shareholder of Zao, is one of Google's main competitors in the region, but the FAS' rejection of the proposed deal was on the grounds that Google didn't provide enough information in its submission. Only 14 per cent of Russia's population of 142 million are online, according to comScore, meaning Google has missed out on a big opportunity to tap into a rapidly expanding market. In a statement, Google said it was 'very disappointed' in the FAS' decision.
- Meanwhile, Google, along with competitors including Microsoft, received better news from the Federal Communications Commission in the US, which has approved a proposal to free up unused TV airwaves for wireless internet access. The Commission rejected claims from broadcasters that the move may disrupt TV broadcasts. Google and other internet rivals are fans of the ruling because it will allow the growth of so-called 'white-space devices' (such as internet-enabled mobiles), which will benefit from more spectrum space. With the G1 in stores now, Google's fortunes in the mobile arena are on the up.
WORLD DOMINANCE UPDATE
Google's dominance in Germany is now greater than its lead in the UK. The search giant accounted for three billion of 3.8 billion searches made in Germany in July. The figure represents almost 80 per cent of all searches in Germany, says comScore.