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Microsoft-Yahoo alliance to move ahead as search deal approved

Microsoft and Yahoo have announced that they have received approval from the U.S. Department of justice and the European Commission to commence a joint-search agreement.

The deal will basically see Microsoft powering Yahoo’s search engine on the backend for normal and paid search platforms. Yahoo would become the sales force to both companies for premium search engine advertisers.

The process of completing a deal is expected to start in the next few days.

The effect of the whole transition process will not be seen until the end of 2010, at which point they hope Yahoo’s search engine will be powered by Bing’s search technology in the U.S at least.  It will probably be at least 2011 before it has moved over global search engine customers and partners. 

In the current search engine marketing arena, the reality for advertisers is that Google attracts the largest number of visitors for searches, particularly in Europe, but the Microsoft-Yahoo deal may prove to be a viable alternative and provide Google with some competition.