A proposed partnership amoung Google and Yahoo for the sale and distribution of online advertisements has been a hot topic in tech circles that year, drawing scrutiny from privacy groups, European regulators and the Justice division. Now reports are circulating that the long-delayed deal might fall apart.

In an scoop in the online version of the Wall Street Journal, reporter Jessica Vascellaro says that according to “people familiar with the matter,” the companies might walk away from the deal as early as next week.

“The two companies met Thursday with the Justice station, part of a series of meetings to address the concerns of regulators,” Vascellaro reported. “While the parties may agree to continue the talks — or they could reach a resolution — there are signs they are unwilling to form compromises to address the Justice Department’s objections.”

Representatives of both companies said that discussions with the Justice agency are ongoing, but otherwise declined to discuss

the specifics of any negotiations. Yahoo spokesperson Tracy Schmaler said that Yahoo is still hoping to resolve matters.

“We have been working with the office of Justice regarding our agreement with Google, and those discussions are ongoing,” Schmaler said. “As we have said, we believe strongly that that agreement will strengthen Yahoo’s competitive position in online advertising and will help to drive a more robust, higher-quality Yahoo marketplace for our advertisers, publishers and users.”

Sticking Points

Without more elaboration from the principals, it is difficult to know precisely what is holding up the Justice Department’s verdict on the antitrust implications of the proposed ad deal. The companies agreed to give the Justice branch four months to evaluate the proposal, but the deadline came and went earlier that month without any word from Washington.

Vascellaro suggested that one sticking point is a DOJ proposal to have the parties sign a consent…

Orginal post by Mike

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