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Originally published November 21, 2008 at 12:00 AM | Page modified November 23, 2008 at 4:00 AM

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Editorial

Google's dominance is a growing concern

It would be an antitrust calamity for the two largest online companies to combine in any way.

Seattle Times editorial

ON Nov. 5, when national attention was on the election returns, many Americans missed a significant event. Google dropped its plan to pool advertising with Yahoo because of objections from the Department of Justice. The regulators' justifiable concern was the two companies' shares of market.

Google has a global share of 81 percent. Yahoo has 11 percent. Next are MSN, 3 percent, and AOL, 2 percent. With the market divided like that — one giant, one little guy and some insects — it would be an antitrust calamity for the two largest companies to combine in any way.

Yahoo might combine with someone else — Microsoft offered it $33 a share last spring — but not with Google.

The Los Angeles Times noted there is "a deep awareness — and growing concern — by regulators of Google's online dominance."

Several things might help correct that. If Yahoo can't succeed on its own, it needs to be acquired by a company that will give it a run.

Yahoo CEO Jerry Yang was against the $33 offer from Microsoft but he said Monday he would be stepping down. Yahoo stock, which had fallen to $10.63, jumped about a dollar.

There is another problem. Google is getting rich packaging content owned by magazines and newspapers and not paying for it. At some point, Google should have to pay. Yahoo, also.

Copyright © 2008 The Seattle Times Company

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