Think Tank Tries Imagining a Yahoogle Consent Decree

The American Antitrust Institute (AAI) has waded into the Yahoogle debate with a 22-page white paper that worries that the Yahoo-Google alliance will turn into “a black hole that swallows up Yahoo.” And it says that if the government can’t negotiate a consent decree that “preserves Yahoo’s [economic] incentives to remain in the paid search market” and compete against both Google and Microsoft – the only potentially pro-competitive feature in the deal is the money it would throw off that Yahoo could invest in its Panama advertising platform – then the Justice Department should “seek an injunction to prevent Google and Yahoo from implementing their agreement.”

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