Yahoo!-Google alliance 'under investigation'
E-commerce
24 April 2008
The two-week alliance between Yahoo! and rival Google is under investigation by authorities in the US, it has been reported.
Justice department officials are said to be examining a trial between the pair, during which Yahoo! featured Google's search results, after claims it was anti-competitive.
Both search companies said they kept authorities abreast of developments. Tracy Schmaler, a Yahoo! spokeswoman, insisted the firm had "proactively kept the department of justice informed," while Adam Kovacevich, from Google, insisted "we have been responsive to their questions about it".
Computer giant Microsoft, which is embroiled in a take-over bid for Yahoo!, is worried any tie-up between the two search companies would dominate the market.
Yahoo! has rejected Microsoft's advances and could face a hostile takeover attempt at the weekend.
The company, headed by Jerry Yang, has talked to Time Warner and News Corp to look for alternatives to the Microsoft takeover.
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