U.S. extended review of agreement between Yahoo and Microsoft

The U.S. antitrust regulators requested more documentation on its investigation of Microsoft's agreement to provide search technology to Yahoo, the companies said Friday.

Both Microsoft and Yahoo confirmed that the antitrust division of the Justice Department had made a second request for documents, which shows a decision to conduct a deeper review that could take months.

"We received this additional request of the Government, as we expected," said Microsoft spokesman Jack Evans.

"Obviously we are cooperating fully," said Yahoo spokesman Adam Grossberg.

The companies said they expect the deal, reached last July and could challenge the leader of the Google Internet search, is expected to close in early 2010.

Google is the number one search engine with a 65 percent market share, while Yahoo is second with 19 percent and Microsoft is third with about 9 percent.

Antitrust experts expect the deal to be analyzed in detail by regulators, but that was ultimately approved.

In late July, Microsoft and Yahoo have signed a 10-year agreement under which Yahoo will have websites Bing, the new Microsoft search engine.

Microsoft obtained a license to the Yahoo search technology, allowing Microsoft to integrate certain aspects Bing. The advertising search product, AdCenter, also replace the equivalent products from Yahoo, Panama.

While Yahoo's agreement with Google for search ads was frustrated by the vehement objections from advertisers and newspapers, the two sectors were enthusiastic about the prospect that Microsoft and Yahoo come together to be stronger competition for Google, said a source who asked not to be quoted by the sensitivity of the topic.

Microsoft has expressed confidence that he can persuade regulators that a stronger rival to Google is the best for the market.

A second source close to the deal declined to describe what information they had requested. "Must we provide evidence of our agreement by the search engine," said one source, who also declined to be quoted.

No comments:

Post a Comment