After long discussions, regulators have approved the deal between Microsoft and Yahoo. In July of last year Microsoft came forward with plans to purchase Yahoo’s Internet search and search advertising sector’s. Many questioned whether the union between the two companies would enter into Monopoly territory, but after some debate both European and US regulators agreed it would be permissible.
Under the deal, which the European Commission ruled, "would not significantly impede effective competition,” Microsoft’s Bing Search engine would be displayed on the Yahoo website with revenues divided between the two.
The deal is attractive to Microsoft as they work to regain relevance on the search engine front after Google indisputably began dominating it several years ago.
Prior to Google’s search supremacy, the Microsoft and Yahoo union may have been seen as a threat to the remainder of the market. Today, however Google has taken away such a large portion of both of their business that together the two have under 10 percent control of the search engine market in Europe. Google has 90 percent.
The Commission employed this figure as the primary reason for approval, hoping the deal would tip these scales and help improve competition in this arena by encouraging Microsoft to usurp some power from Google.
In the U.S., the arrangement, which will last a span of 10 years, was approved Thursday by the Department of Justice.
With the permissions in place, Microsoft's Bing search engine will operate on the Yahoo home page and throughout the network, while Yahoo will act as the primary advertising squad for Microsoft. For their services, Microsoft is entitled to 12 percent of Yahoo’s revenues. The changes will begin in the days ahead.
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