Google has opted out of its search deal with Yahoo. The search giant blamed regulator and advertiser concerns about the agreement, writes Guardian.co.uk.

The chief executive of Yahoo, Jerry Yang, said he felt let down by Google’s decision to pull out of an advertising agreement between the two internet rivals.

The $800m (£500m) deal, which would have enabled Google to sell advertising on some parts of Yahoo’s search engine listings, had been subject to a formal investigation by the US department of justice over potential monopoly concerns. Google decided on Wednesday that it would pull the plug on the agreement.

“It was disappointing to us that they didn’t want to defend this deal,” said Yang, speaking at the Web 2.0 summit in San Francisco. “We were going through a process with the department of justice to get them to understand how this was a good deal.”

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