European Commission says yes to Microsoft/Yahoo search deal

Microsoft and Yahoo’s proposed search deal has been approved by the European Commission.

Microsoft and Yahoo

It said the ten-year deal, which will see Yahoo’s search service powered by Microsoft’s Bing, “wouldn’t significantly impede effective competition”.

The deal was struck by the two companies last July to allow Microsoft and Yahoo to compete more effectively against Google, which has almost 90% market share in the UK alone.

It’s also being assessed by the US Department of Justice, with a decision expected by June.

If approved, for the first five years Yahoo will take 88% of the revenue from all search ad sales and will be given the chance to sell ads on some Microsoft sites. For the remaining five years Yahoo will retain 93% of revenue earned.

The deal was announced a month after Microsoft lauched Bing, its lastest attempt at breaking the search market. In the six months since rollout Bing has gained traction, being the fastest growing search engine in the US in December.

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