EC approves Microsoft deal with Yahoo

The European Commission has approved a tie up between Microsoft and Yahoo, as the software giant seeks to narrow the gap between its Bing search engine and global leader Google.

With Bing and Yahoo controlling less than 10% of the European search market, the Commission decided the deal “would not significantly impede effective competition”.

The tie-up will see Microsoft’s Bing platform processing search requests on Yahoo.

A joint statement said: “While Microsoft will provide the underlying platform, both companies will continue to create different, compelling and evolving experiences, competing for audience, engagement and clicks.”

Microsoft chief executive Steve Ballmer said: “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 companies said they will begin implementing the deal in the coming days and expect to complete the process within two years.

In the US, the deal was backed by the justice department. In 2008, it had threatened to block a deal between Google and Yahoo.