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Microsoft gets green light for deal with Yahoo


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Clearance granted, now comes the tough part

Microsoft has received the go-ahead from both the US Department of Justice and the European Commission for its cooperative search arrangement with Yahoo.

Microsoft will now use its Bing search engine on Yahoo in exchange for the paid search results. Yahoo gets sales rights to advertising on their own, and Microsoft's platforms.

"Although we are just at the beginning of this process, we have reached an exciting milestone," said Microsoft chief executive Steve Ballmer.

"I believe that together, Microsoft and Yahoo will promote more choice, better value and greater innovation to our customers as well as to advertisers and publishers."

The two estimate that the search engine switch over will take place this year, while advertisers and publishers should also be transitioned in time for the holiday season, although the two acknowledge this deadline may be too tight.

The companies said that by 2012 the transition to the new arrangement would be complete for everyone. A web site, dubbed Search Alliance, has been set up to keep customers informed of progress.

"This breakthrough search alliance means Yahoo! can focus even more on our own innovative search experience," said Yahoo! chief executive Carol Bartz.

"Yahoo! gets to do what we do best: combine our science and technology with compelling content to build personally relevant online experiences for our users and customers. "

The only countries still left to approve the deal are Korea, Taiwan, and Japan, and itg seems unlikely that objections will be raised.

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