Yahoo has agreed to use Microsoft’s search engine, Bing, on its Internet sites in return for 88 percent of the revenue from search ads for the first half of the 10-year deal announced on Wednesday. The deal is expected to be completed early next year.
Yahoo and Microsoft in their announcement said their agreement will provide more choices for consumers and advertisers, but they expect it will be “closely reviewed by the industry and government regulators.”
That’s because Yahoo and Microsoft together may increase search competition. Google has a 65 percent share of the U.S. Internet search market, according to research firm comScore in June, while Microsoft had 8.4 percent of searches and Yahoo had about 20 percent.