Regulators take closer look at Microsoft search

 

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By Reuters

Posted on 17 Sep 2009 at 08:53

EU and US regulators are taking a deeper look at Microsoft and Yahoo's search deal, according to reports.

"There are ongoing informal discussions between the European Commission and Microsoft and Yahoo on their search engine partnership," a source close the deal told Reuters, without giving further details.

Antitrust experts claim it's too early to say if the EU executive will proceed to a formal probe. However, one bright spot for the companies is that regulators could have begun with a formal probe, so the informal start could be seen as a good sign.

As we said when the agreement was announced, we anticipated that this deal will be closely reviewed in the United States and EU

Microsoft confirmed discussions were taking place, but professed itself unconcerned: "As we said when the agreement was announced, we anticipated that this deal will be closely reviewed in the United States and EU, and discussions in both geographies continue," says Microsoft spokesman Jack Evans. "We remain hopeful the deal will close in early 2010."

It's not just the EU that's sniffing around the deal. US antitrust authorities have requested more documents from the companies, indicating the possibility of a formal review.

By combining their search engines, Yahoo and Microsoft would hold roughly 30% of the search market, making their combined audience a more attractive place for marketers to spend their ad money. However, Microsoft has expressed confidence that it can persuade regulators that a stronger rival for Google is in the best interests of the market.