As BoomTown readers know, I have been adamant that Yahoo’s online ad outsourcing deal with Google is troublesome on a lot of levels. Although, so is government intervention.

From giving advertisers less choice to creating a de facto monopoly to its potential for stifling innovation, the deal gives me the heebie-jeebies, given that the pair control 80 percent of the online search ad market.

Now, The Wall Street Journal is reporting that the Justice Department has quietly hired an outside litigator to contemplate whether the government should consider mounting an antitrust case against the search giant.

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Yes, the board of Yahoo is meeting today to try to devise new and more dastardly ways of wringing more money out of Microsoft.

For viewers just tuning in, so far this week on “As the Tiny-Incestuous-Petty-Juvenile-Digital World Turns,” Yahoo has been plenty busy:

An AOL mashup deal!

A Google search-ad partnership!

Even–cue the trumpets!!!–the late entrance of that man-about-Silicon-Valley from Web 1.0, Frank Quattrone, working for Google, which is helping Yahoo on AOL (and, fun, snake-eating-itself fact: as a banker, Quattrone worked for Yahoo when it was contemplating buying eBay).

This is so deliciously sweet, in terms of geek soap opera, that I fear I may get a major cavity soon.

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