Following the announcement back in June that Google was to provide search advertising through Yahoo!'s content network, the deal has been facing government review for anti-competitive concerns. After some delay and increasingly negative feedback from the regulators, as well as from some advertisers, Google has finally decided to step back from the deal and has announced an end to the agreement.

The origins of this arrangement followed Yahoo!'s aborted takeover by Microsoft and came at a time when Yahoo! was looking for support against this move. Now, however, Yahoo! is looking increasingly isolated as Microsoft are saying they are no longer interested in a deal except possibly a more limited search partnership Yahoo!'s stock has also fallen lower than when the takeover was in discussion and they look to be in an increasingly fragile position.