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California likes Google and Yahoo deal


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Leaders tell regulators to leave the two alone


Eleven California state political leaders have written to U.S. regulators asking them to leave proposed online advertising tie-up between Google and Yahoo alone.

The politicians are from the state where both the Internet titans are based.  They wrote a letter warning U.S. Attorney Michael Mukasey that Internet market growth and innovation "could be stifled" by blocking the Google-Yahoo alliance.

They said they were deeply concerned that the Department of Justice may be considering a preemptive lawsuit to block Yahoo's non-exclusive online advertising agreement with Google.

The letter said that if such action were taken, the “unprecedented suit could detrimentally affect the online advertising market and e-commerce."

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