Not confirmed, but makes sense given the way this has been headed. The partnership will have to be so neutered to pass muster that it seems no longer worth doing anyway.
Google, Yahoo! likely to drop venture
by Cecile Kohrs Lindell In Washington Posted 03:00 EST, 21, Oct 2008
A proposed joint venture between rival Internet companies Google Inc. and Yahoo! Inc. appears headed for the trash bin, just ahead of an expected U.S. Department of Justice challenge to the agreement, lawyers close to the deal said.
Assistant Attorney General Tom Barnett met on Oct. 17 with lawyers for the parties for the second time in two weeks. The bottom line of the meeting was grim, said one lawyer who asked not to be identified.
“Nothing good came from it,” he said.
The DOJ could file a complaint seeking a preliminary injunction on the agreement even as the parties assess their options. Antitrust lawyers said the government would have to clear a high hurdle to win a preliminary injunction. But it is even less likely that Google and Yahoo! would want to battle the government in court over such a controversial deal, particularly while the financial market is so precarious, the lawyer said.