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October 01, 2008
Controversial Google deal gains hometown support

Call it a case of home cooking. Although Google has taken a lot of heat over its proposed search deal with Yahoo, both companies are getting a nod of support from 11 California state legislators, who are urging the federal government not to interfere with the deal.

Google and Yahoo are, of course, headquartered in California. But the legislators said they were acting to avoid the stifling of growth and innovation across the internet.

"We are 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 lawmakers said in the letter. "If such action were taken, we believe such an unprecedented suit could detrimentally affect the online advertising market and ecommerce."

Ironically, an adverse impact on ecommerce and online advertising has also been cited as a concern by opponents of the deal, who have gone as far as to call Google a monopoly.

Google has said that it plans to go ahead with the deal by the middle of October. Meanwhile, regulators are still looking into the matter.

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