CCIA Statement on Microsoft Yahoo Search Deal

July 29, 2009

Microsoft and Yahoo have announced a ten year Internet search deal today. The agreement means Microsoft’s Bing search engine will power the searches on Yahoo’s websites.

The following statement can be attributed to Computer & Communications Industry Association President & CEO Ed Black:

“The fact that this deal preserves Yahoo as an independent company is extremely important and positive. Yahoo has been a platform for innovation and an important competitive player in the Internet space since its founding in the early 90’s.

“This deal appears to strike a reasonable balance with Microsoft and Yahoo cooperating on search, while remaining vigorous competitors in other key Internet markets — such as Webmail and Instant Messaging. In fact, it is this dynamic that antitrust authorities should focus on in their review. Ensuring that this deal is structured narrowly and in such a way as to ensure that Microsoft and Yahoo do indeed remain aggressive competitors in all other markets besides search, is the most logical role for antitrust regulators.

“Last year, CCIA raised concerns about Microsoft acquiring Yahoo and later said a possible Google and Yahoo search deal should receive regulatory scrutiny. We think such scrutiny is also appropriate for this proposal. However, preliminary indications show this proposal attempts to address important competition issues in a careful way.”

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