EU Commission nods through anti-Google alliance
The European Commission has approved the planned collaboration between software giant Microsoft and Internet company Yahoo in the online search sector. The deal is not expected to affect competition due to the small market share of both companies.
Microsoft and Yahoo together had less than a ten percent share of the European market, while Google had more than a 90 percent share, as the Brussels authority decided. Microsoft may therefore take over Yahoo's Internet search and search engine advertising businesses. The two had agreed in July9 2009 to cooperate in the field of online search. The aim was to combine Microsoft's technology with Yahoo's sales power.
Under the terms of the agreement, Microsoft will acquire an exclusive license for Yahoo's search technologies for a period of ten years, while Yahoo will only use Microsoft's search technology. Yahoo will use Microsoft's new Bing search engine instead of its own technologies. For both sides, the advantage of the cooperation is a wider reach, which brings higher advertising revenues. Of the joint advertising revenues, 88 percent will initially remain with Yahoo. The switch to Microsoft's joint system is to start in the next few days and is expected to be completed by the end of 2012.
Under the terms of the agreement, Microsoft will acquire an exclusive license for Yahoo's search technologies for a period of ten years, while Yahoo will only use Microsoft's search technology. Yahoo will use Microsoft's new Bing search engine instead of its own technologies. For both sides, the advantage of the cooperation is a wider reach, which brings higher advertising revenues. Of the joint advertising revenues, 88 percent will initially remain with Yahoo. The switch to Microsoft's joint system is to start in the next few days and is expected to be completed by the end of 2012.
