EU in informal talks on Microsoft, Yahoo deal

BRUSSELS, BELGIUM: European Union antitrust regulators are talking to Microsoft and Yahoo about their search engine deal according to a source familiar with the situation on Tuesday.

"There are ongoing informal discussions between the European Commission and Microsoft and Yahoo on their search engine partnership," the source said, without giving further details.

Microsoft and the Commission were not immediately available to comment. Microsoft and Yahoo struck their 10-year Web search deal in July, seeking to challenge market leader Google.

Last week, U.S. antitrust authorities requested more documents from the companies, indicating the possibility of a months-long review. Both companies have said they do not expect an antitrust review to be completed until early 2010.

Antitrust experts in general expect regulators to scrutinise the deal closely but ultimately to clear it.

Microsoft has expressed confidence that it can persuade regulators that a stronger rival for Google is in the best interests of the market.

With 65 percent of searches, Google is the No. 1 search engine, followed by Yahoo with about 19 percent and Microsoft with around 9 percent.