The big news in Search last week was the final go-ahead on the integration of Microsoft and Yahoo’s Internet-search businesses.
The on-again, off-again deal by the two internet giants was signed back in July, but regulatory approval by the European Commission and the US Department of Justice only came through this week.
According to a joint statement made by the new Search Alliance, changes will start being implemented very soon. Microsoft is to power the search technology on both Bing and Yahoo but each site will continue to operate under its own identity;
“Implementation of the deal is expected to begin in the coming days and will involve transitioning Yahoo!’s algorithmic and paid search platforms to Microsoft, with Yahoo! becoming the exclusive relationship sales force for both companies’ premium search advertisers globally. Once the transition is completed, the companies’ unified search marketplace will deliver improved innovation for consumers, better volume and efficiency for advertisers and better monetization opportunities for web publishers through a platform that contains a larger pool of search queries.” From Yahoo’s official press release.
Microsoft CEO Steve Ballmer previously described the move as a way to provide “real consumer choice in a market currently dominated by a single company.” Unsurprisingly Google, which controls over two thirds of the search market in the US had tried to prevent a deal between its main search rivals. Back in 2008 when Microsoft bid almost $45bn to acquire all of Yahoo!, Google openly attacked the move as anti competitive and tried to sign its own deal with Yahoo Search Business. Google were eventually forced to pull out of that deal after the US Department of Justice questioned the antitrust implication of one company controlling what would have been an estimated 90% of the US search market.
Whether the new alliance will put a halt on Google’s burgeoning search market share remains to be seen. With a combined search market share less than half than that of Google, they certainly have their work cut out for them.





