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02 February 2008

Yahoo! / Microsoft Antitrust Approval

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San Jose Mercury News - Antitrust approval for Yahoo deal may not be a slam-dunk


Just for further reading, this is an article from the San Jose Mercury News about the antitrust prospects for a possible marriage of Yahoo! and Microsoft. As I said yesterday, I believe that, unlike the Google/Double-click deal, a Yahoo!/Microsoft deal may not get through antitrust scrutiny.

I think the problem with the "Google-click" deal was that the anti-competitive results of that merger were not obvious enough to the public, and therefore there was not enough incentive for lawmakers to block such a big deal. However, Yahoo! and Microsoft have both been household names for a long time, and even if people can't rationally explain why this merger would have some anti-competitive effects on the tech market, they will probably say that anti-competitive effects exist.

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