Microsoft allowed to team up with Yahoo to take on Google

MICROSOFT stepped up its battle to knock Google from its pedestal yesterday when it was finally granted permission to team up with Yahoo.

European and US regulators allowed the decision on the grounds that the combined company would still control just 10 per cent of the search engine market.

Microsoft has so far failed to make a dent in Google’s dominance despite the much heralded introduction of its rival search engine Bing. The new ten-year agreement would see Yahoo’s website incorporate Bing technology. Yahoo will provide the main advertising sales team for the joint operation.

Microsoft will retain 12 per cent of the search engine revenues generated via Yahoo’s website for the first five years of the deal.