Statement Of Sen. Patrick Leahy (D-Vt.),
Chairman, Senate Judiciary Committee,
Hearing On “The Google-Yahoo Agreement
And The Future Of Internet Advertising”
July 15, 2008
The Internet has opened new means of communication, new ways to
promote ideas, and new ways to buy and sell products and services.
The explosion of free and easily accessed content on the Internet
has been driven by a successful and competitive online advertising
industry.
The online advertising industry in the U.S. reportedly surpassed $25
billion last year. As more people use the Internet more often and
with increased purposes, advertisers will similarly move to online
platforms to move their message. The issue for the Committee today
is whether these advertisers – be it Orvis or the Vermont Teddy Bear
Company – will find options at competitive prices.
Business on the Internet is dynamic. The antitrust laws, rooted as
they are in the fundamentals of competition in innovation and
pricing, are nimble enough to keep up with changing business models
and technology.
The resolution of the drama being played out in the courting of
Yahoo by both Microsoft and Google will have lasting effects. The
Google agreement with Yahoo may relate only to text advertisements,
but if it stifles competition in this market, that will quickly
spill into emerging online ad markets such as delivery to mobile
devices.
The ability of a single company to dominate the online advertising
marketplace also raises the specter that one company will accumulate
vast amounts of personal viewing data. This leads to significant
privacy concerns, an issue on which I will remain focused as the
online advertising market continues to develop.
The Antitrust Subcommittee has taken a leading role in examining
competition issues surrounding online advertising. I thank Senator
Kohl for staying vigilant to ensure competition remains vibrant, and
for holding this timely and important hearing.
I look forward to hearing from our distinguished panel of witnesses
today.
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