Google and Yahoo Delay Partnership Over Controversy

Google Inc and Yahoo Inc on Friday said they will delay its advertising partnership. The two Internet companies have been faced with controversy since joining agreeing to run Google AdSense ads on Yahoo's search engine results.

Google Inc and Yahoo Inc have delayed their advertising partnership for at three weeks. The two Internet companies still seek to implement the ad agreement this month.

"The companies have agreed to a brief delay in implementing this agreement to continue our ongoing discussions with the Department of Justice," Yahoo said in a statement.

Yahoo says that it had discussions with regulators and are currently answering questions about its agreement with Google.

While the ad partnership is pending, it is expected to resume this month. A source familiar with the discussions said the two companies are still seeking an October time frame for ad implementation.

The deal to show Google advertisements on Yahoo's search engine results has bene controversial. Critics of the partnership said it was an effort to fend off Microsoft's efforts to purchase Yahoo. There are other concerns that the two business technology companies could control or increase advertising prices in the market.