Yahoo, Microsoft get approval for search deal bu EU

  
Microsoft's plans to buy Yahoo's internet search and search advertising businesses have been cleared by the European Commission.
The Commission ruled that the deal "would not significantly impede effective competition" in the search engine marketplace.
The two US companies first announced the deal in July of last year.
Microsoft is seeking to increase its share of the search engine industry, which is dominated by Google.
In explaining its decision, the Commission said that taken together, Microsoft and Yahoo currently have less than 10% of the search engine market in Europe, with Google controlling 90%.

The Commission said its investigation showed that the deal was expected to "to increase competition in internet search and search advertising by allowing Microsoft to become a stronger competitor to Google".

In 2008, Microsoft offered $47.5bn (£30.4bn) to buy the whole of Yahoo, but its bid was turned down.

Yahoo Inc. and Microsoft Corp. announced Thursday morning that their search agreement has received clearance from both the U.S. Department of Justice as well as the European Commission. The deal -- first announced in July of 2009 . Yahoo (YHOO 15.52, +0.08, +0.52%) handing over its Web search activities to Microsoft (MSFT 28.72, +0.13, +0.46%)  in exchange for a portion of the ad revenue generated. In a joint statement, the two companies said they plan to complete the transitioning of search by the end of the year, though some advertising partners may not be moved until the following year.