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BRUSSELS, Feb 18 (KUNA) -- The European Commission approved here Thursday
the proposed acquisition of the internet search and advertising businesses of
Yahoo! Inc. by Microsoft.
The EU's executive concluded that the concentration would not significantly
impede effective competition in the European Economic Area (EEA) or any
substantial part of it.
Microsoft is active in the design, development and supply of computer
software and the supply of related services on a worldwide basis.
The Yahoo search business subject to the transaction encompasses the
internet search and the online search advertising businesses of Yahoo,
including its online search advertising.
Under the agreement , Microsoft will acquire a 10-year exclusive license to
Yahoo's search technologies. Microsoft will also hire Yahoo internet search
and search advertising staff.
Microsoft will become the exclusive internet search and search advertising
provider used by Yahoo. In exchange, Microsoft will retain 12% of the search
revenues generated on Yahoo's and its partners' websites during the first five
years of the agreement, paying 88% to Yahoo as a traffic acquisition cost.
In the EEA, Microsoft's and Yahoo's activities in internet search and
online search advertising are very limited with combined market shares
generally below 10%. Google, by contrast, generally enjoys market shares above
90%, said the European Commission in a statement. (end)
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