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You may have been following the protracted saga of the proposed deal to show Google adverts on Yahoo! Google has finally pulled out of this deal blaming both the legal battle with the competition authorities as well as disapproval from some key advertisers.

In my view this is a shame. On the surface Yahoo! showing Google ads sounds like Yahoo! giving up and allowing the Google monopolyӔ to expand. However the recent attempts by Yahoo! to make the deal more palatable to the US authorities made it clear, in my mind at any rate, that they saw the deal as a way of raising funds to increase their investment in their own search capabilities.

So what we are now left with is a Google who wont notice the difference in revenue and, after the battles with Microsoft, a severely weakened Yahoo!

In short, the US authoritiesҒ stance has probably cemented the domination of Google AdWords, rather than weakened it.

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