Google hikes ad prices even before Yahoo deal kicks in
Owen Thomas · 09/18/08 07:00PMCEO Eric Schmidt says Google is moving at full speed with plans to place ads on its archrival Yahoo, even though the Department of Justice is just gearing up to take action on the deal. The deal, signed in June, is set to start in weeks. "You face a question as a large company trying to change things: How many initiatives do you want to take on that are unpopular or lead to criticism?" said Schmidt in a press conference. By "change things," Schmidt would have you think he's talking about saving the world. But here's something that should draw interest from antitrust cops: A Valleywag tipster says that one unpopular change Google is making is to hike the minimum bids on some ads tenfold. That kind of pricing power is usually a sign of a monopoly. And it should well lead to criticism.It's not clear how widespread the price hikes are. (If you've seen raises in your Google bids, please let us know.) But even if the price changes are narrowly targeted, they're alarming in their size and suddenness. The effect of hiking the bids, and then dropping them, says our tipster, is that many of the keyword campaigns were canceled for not meeting the temporarily raised minimums, as he says this screenshot shows: