Advertisers vs. the Free Market

Washington, D.C.—The Association of National Advertisers, a trade association representing 400 companies, has asked the Justice Department to use antitrust law to halt a proposed Google-Yahoo search advertising partnership. The deal, the group claims, will “diminish competition,” increase Google and Yahoo’s “market power,” and “raise prices.”

“This call to prevent Google and Yahoo from collaborating is an attack on the free market,” said Alex Epstein, an analyst at the Ayn Rand Center for Individual Rights. “Google and Yahoo, individually or combined, have no power to force anyone to advertise with them; their only power is the power to continually persuade advertisers that their services are the best use of advertisers’ money.

“If the members of the Association of National Advertisers object to the advertising options offered under a new Google and Yahoo partnership, there is a simple solution: don’t advertise with them. But they have no right to dictate to Google and Yahoo how to run their businesses.”