The Google-Yahoo deal is coming under more fire – this time from advertisers.

The Association of National Advertisers has sent a letter to U.S. regulators objecting to the proposed Internet search advertising partnership between Yahoo and Google, supplying critics with even more fodder to shoot down the deal.

Essentially, the ANA is saying that the deal will give too much control over online advertising to one partnership. The group’s stance isn’t to be taken lightly, since they represent big players like General Motors and Procter & Gamble.

The letter comes as the Justice Department is still looking over the deal. It’s unclear just how far the review has progressed. Here’s what the Wall Street Journal says…

The department, which doesn’t comment on pending reviews, is gathering depositions and evidence that could be used to block the deal if a decision were made to do so, people close to the matter say. But taking testimony in the course of a review isn’t unusual, and does not necessarily indicate antitrust regulators will challenge the agreement.

Now just imagine what kind of scrutiny a full-blown deal between Yahoo and Google, or Yahoo and Microsoft, would have attracted.

Keep an eye on: 

• The Magazine Publishers of America is introducing a campaign to convince advertisers that the print advertisements work on consumers (NY Times)
• RealNetworks is expected to announce a new software product named RealDVD (NY Post)
• MySpace and its partners are looking for an executive to lead the MySpace Music venture (NY Post)

(Photo: Reuters)