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Microsoft-Yahoo Deal Faces Scrutiny by the US Justice Department

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Microsoft-Yahoo Deal Faces Scrutiny by the US Justice Department

Two months after the Yahoo-Microsoft deal was sealed, it’s now time to scrutinize the said deal. The US Justice Department has just asked the two companies to provide more details about the search ad deal. This latest development officially puts the controversial partnership agreement under a long procedure to determine whether is should push through or not.Both Microsoft and Yahoo are reportedly preparing their responses to questions that could include details of their respective search-engine investment, ad pricing and product plans. All of these are aimed at proving that if the said deal pass through the Justice Department, its claim of not being anti-competitive is actually valid.

Among the possible questions that Microsoft and Yahoo would need to answer is whether their claim that the said deal will make them more competitive agaisnt Google. Along the way, the Justice Department might also probe on other relevant internet advertising programs of Microsoft and Yahoo to determine whether each individual company will not be able to compete if they will not team up. In addition, the Justice Department would also like to find out whether this deal will really be beneficial to users.

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Arnold Zafra

Arnold Zafra writes daily on the announcements by Google, Ask.com, Yahoo & MSN along with how these announcements effect web ... [Read full bio]

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