America Online 2009 Annual Report Download - page 15

Table of Contents
Google Alliance
In April 2006, AOL, Google and Time Warner completed the issuance to Google of a 5% equity interest in us and entered into agreements in March
2006 which expanded their existing strategic alliance. Under the expanded alliance, Google provides our consumers with a general, Internet-based search
experience that utilizes Google's organic web search results and additional links on the search results page that showcase contextually relevant AOL and third-
party content and information (adjacent to the search results), as well as a variety of search-related features (such as suggesting related searches to help users
further refine their search queries). We also provide our consumers with relevant paid text-based search advertising through our relationship with Google, in
which we provide consumers search-based sponsored link ads in response to their search queries. In addition, Google provides us with the use of a white-
labeled, modified version of its advertising platform to enable us to sell search-based keyword advertising directly to advertisers on AOL Properties, provides
us with advertising credits for promotion of AOL Properties on Google's network, provides other promotional opportunities for our content and collaborates
with us on a number of other areas.
On July 8, 2009, Time Warner completed the purchase of Google's 5% interest in us. See "Note 4: Business Acquisitions, Dispositions and Other
Significant Transactions" in our accompanying consolidated financial statements for additional information on this purchase.
Competition
We compete for the time and attention of consumers with a wide range of Internet companies, including Yahoo! Inc., Google, Microsoft Corporation's
MSN, IAC/Interactive Corp. and social networking sites such as Facebook, Inc. and News Corporation's MySpace, as well as traditional media companies
which are increasingly offering their own Internet products and services.
We compete for advertisers and publishers with a wide range of companies offering competing advertising products, technology and services,
aggregators of such advertising products, technology and services and aggregators of third-party advertising inventory. In addition to those companies listed
above, competitors include WPP plc (24/7 Real Media) and ValueClick, Inc. Competition among these companies has been intensifying and may lead to
continuing decreases in prices for certain advertising inventory, particularly in light of current economic conditions where advertisers in certain categories are
lowering their marketing expenditures.
Our subscription access service competes with other Internet access providers, especially broadband providers.
Internationally, our primary competitors are global enterprises such as Yahoo!, Google, MSN, IAC, Facebook, MySpace and other social networking
sites, as well as a large number of local enterprises.
The Internet industry is dynamic and rapidly evolving, and new and popular competitors, such as social networking sites, providers of communications
tools and providers of advertising services, frequently emerge.
Government Regulation and Other Regulatory Matters
Our business is subject to various federal and state laws and regulations, particularly in the areas of privacy, data security and consumer protection.
Laws and regulations applicable to our business include the following:
• The Children's Online Privacy Protection Act of 1998 and the Federal Trade Commission's related implementing regulations, which prohibit the
collection of personal information from users under the age of 13 without parental consent. In addition, there has been an international movement
to provide additional protections to minors who are online which, if enacted, could result in substantial compliance costs.
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