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An advertising industry association–backed by four of the world’s largest ad agencies–sent a letter to the Department of Justice Monday endorsing the Microsoft-Yahoo search deal, saying it “enhances competition.”

The pending deal between Microsoft and Yahoo that would see Microsoft become the exclusive provider of search technology on Yahoo’s Web sites will require regulatory approval to move forward, because the government tends to take a closer look at any deal that involves two of three major players in a given industry joining forces. Some have argued that the high barriers of entry in the search market might lead the DOJ to consider restrictions on the deal, such as the sale of Yahoo’s search technology to a third party.

American Association of Advertising Agencies President and CEO Nancy Hill posted the open letter Monday, which was also signed by Maurice Levy, chairman and CEO of Publicis Groupe; Martin Sorrell, CEO of WPP; Michael I. Roth, chairman and CEO of Interpublic Group of Companies; and John Wren, president and CEO of Omnicom Group. “We believe that Yahoo and Microsoft’s proposal to combine their technologies and search platforms is good for advertisers, marketing services agencies, website publishers and consumers,” they said in the letter.

News Source: Cnet

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