US Department of Justice in favour of new Microsoft deal

The US Department of Justice have released a statement about the proposed deal that will see Microsoft take over the exclusive rights for Yahoo’s search and advertising for 10-years.

The DoJ explained that their blessing was with the two companies, since it would further development in the market by giving Google a run for their money, which in turn would lead to a healthy competition wherein users would benefit from innovations and improvement in services offered as the two giants try to outdo each other.

The statement from the DoJ reads: “The proposed agreement likely will enable more rapid improvements in the performance of Microsoft’s search and paid search advertising technology than would occur if Microsoft and Yahoo! were to remain separate.

“The proposed transaction will combine the back-end search and paid search advertising technology of both parties. U.S. market participants express support for the transaction and believe that combining the parties’ technology would be likely to increase competition by creating a more viable competitive alternative to Google, the firm that now dominates these markets. Most customers view Google as posing the most significant competitive constraint on both Microsoft and Yahoo!, and the competitive focus of both Microsoft and Yahoo! is predominately on Google and not on each other.”