U.S. Justice Dept. Closely Scrutinizing Microsoft/Yahoo Merger

As two of the internet's most prestigious powerhouse companies, Microsoft and Yahoo have reached a proposed deal that would allow the two organizations to join forces. However, according to Channel Web's official website, the United States Justice Department has requested additional information from both Microsoft and Google in relation to their proposed business alliance.

The proposed partnership between Microsoft and Yahoo would undoubtedly make Microsoft a far more legitimate competitor to Google since Yahoo's advertising expertise would correlate with the company's recently implemented search engine known as Bing to generate an increased level of interest within the search engine market.

This action by the U.S. Justice Department is not unprecedented, as evidenced by their refusal to accept an earlier partnership that was proposed between Google and Yahoo. Their decision to review the proposed Microsoft and Yahoo merger is expected to significantly delay the approval process.

According to Channel Web, Google currently possesses three times the U.S. sales of both Microsoft and Yahoo combined. The proposed Microsoft/Yahoo merger is expected to substantially reduce that gap if it is eventually approved by the U.S. Justice Department.

While various factors such as advertisement pricing, company spending, product plans and search engine investing are sure to be key contributors behind the U.S. Justice Department's decision, the underlying factor behind their final determination will be whether or not the Microsoft/Yahoo alliance would inhibit competition within the market.