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EU to investigate Microsoft/Yahoo deal


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The EU is to look into the Microsoft/Yahoo search partnership, following last week's investigation by the US Department of Justice (DOJ).

A confidential source told Reuters that the EU would not be launching a full investigation at this stage, but was examining the deal in light of competition issues.

"There are ongoing informal discussions between the European Commission and Microsoft and Yahoo on their search engine partnership," the source said.

Given Microsoft's rocky past withy the EU any investigation could be a contentious issue for the company but the company has said it was expecting the move.

"As we said when the agreement was announced, we anticipated that this deal will be closely reviewed in the United States and EU, and discussions in both geographies continue," said Microsoft spokesman Jack Evans.

"We remain hopeful the deal will close in early 2010."

Under the proposed deal Yahoo will use Microsoft's Bing search engine to power its results, and the two companies will split advertising revenue from adverts sold next to the results.

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