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Microsoft, Yahoo Search Alliance Gets OK From Justice, European Commission

Microsoft and Yahoo! said Thursday (Feb. 18) they have received a clean bill of health from both the Justice Department and the European Commission for their search alliance.

Neither agency put conditions on the partnership, according to the companies.

The two said they will begin migrating Yahoo!'s algorithms and paid search to Microsoft, with Yahoo! handling sales for both companies' premium "high volume advertisers" and resellers, while Microsoft will represent and support self-service advertisers.

"Neither Microsoft or Yahoo! are off the regulatory hook," says Jeff Chester, executive director of the Center For Digital Democracy. "There are major privacy problems with this deal that we hope and believe the FTC plans to address soon."