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Yahoo?s Google cuddle-up could miff regulators


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Anti-trust, oh the irony


Yahoo’s
bid to form an alliance with Google to stave off Microsoft’s hostile takeover could run aground due to Europe’s tough anti-trust laws.

Yahoo announced last week a test to outsource search advertising to Google, which sources say is part of Yahoo's plans to form a three-way alliance with Time Warner. However, anti-trust experts said regulators would likely oppose any permanent alliance between Google and Yahoo, while they would likely approve Microsoft's proposed merger with Yahoo.

The proposed cooperation between Google and Yahoo has already prompted congressional concern. But EU regulators will probably block the merger, experts have said. It is fairly likely that Europe poses a larger anti-trust risk for any of the Yahoo anti-Microsoft deals.
Last modified on 15 April 2008
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