Yahoo!7's decision to go with Google for search in Australia looks set to be scrutinised by the competition watchdog with Microsoft keen to scupper the deal.
Mi9 or Microsoft will make a complaint to the ACCC. AdNews understands that the two are currently deciding which party will take the complaint forward.
Yahoo!7 confirmed earlier this month that it would partner with Google both for algorithmic search and search advertising in Australia. That is despite a global search agreement with Microsoft. The deal came about because Yahoo!7 and Bing failed to tie-up an agreement before Bing launched locally in July. Both sides have blamed the other for the deal collapsing.
While some in the search industry have told AdNews that "the only winner is Google", it appears Microsoft will take steps to block the deal.
There is some form. In 2008, Google ditched plans to power search for Yahoo! in the US for fear of losing an anti-trust case.
However, as the agreement between the two locally is non-exclusive it may clear the necessary regulatory hurdles.
Should the ACCC rubber stamp the deal, some media buyers have indicated that Bing, Microsoft and Mi9 will need to work harder for their money.
Given Bing's reduced share of the market as a result of going without Yahoo!, buyers want to be incentivised. For example, rewarded with access to Microsoft research in return for putting clients' money into Bing search.
They have also suggested that Microsoft will have to step up its consumer marketing, and that Mi9 should try to use Bing as an add-on in deals - for example, integrate it into packages with The Voice.
"We might put some [money] in but we won't over-invest [in Bing]," said one buyer. "Maybe that would change when they do some consumer advertising. Otherwise they will try to shout more aggressively at us but with even less a share of the market."
Asked about what Bing does now, whether it would market more aggressively and how it would develop its embedded strategy, Mi9 provided a written statement from Steve Geelan, national sales director – MMN & Bing Ads.
He said that "competition is necessary in any industry to keep it healthy" and that there would be "announcements over the coming year regarding Bing".
An ACCC spokesman was not aware that any complaint had been filed.
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