US Senate to Scrutinize Yahoo, Microsoft Merger

The US Senate, led by Judiciary Committee Subcommittee on Antitrust and the Consumer Rights group will conduct an investigation over the multi-million dollar merger between Microsoft and Yahoo to eliminate future problems caused by the deal to consumers and advertisers.

The US Senate, led by the Judiciary Committee Subcommittee on Antitrust and Competition Policy, and two other groups, over the weekend announced its plans to investigate and scrutinize the 10-year deal between Internet giant Yahoo and software manufacturer Microsoft.

In a statement, Senator Herb Kohl, head of the subcommittee, said that the deal is subjected to public scrutiny especially with two major players are joining forces. He said that the Senate, along with the Consumer Rights groups will “carefully” study the terms of the merger to protect consumers and advertisers from a possible dampening of innovation as the two big companies combine their assets.

Based on the said agreement, Yahoo will use Microsoft’s Bing search technology to power its search engines and directly compete with the current market leader, Google Inc.

Yahoo, according to the reports, will also take charge of the sales and advertising arms of the two companies on its premium search advertisers.

Microsoft had earlier announced that it has the capability to combine Yahoo’s search engine technology in its Bing platform for faster and more reliable browsing online. While Yahoo, will push through with the enhancement of the advertising display and other areas of the business.

Executives of both companies said that the new technology would give Google a run for its money.


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