Technology and Business Law Blog

Microsoft’s takeover of Yahoo

On January 29, 2008 Federal Judge Colleen Kollar-Kotelly extended the period of sanctions imposed on Microsoft till November 2009 and it was based on the fact that Microsoft did not provide the protocol specifications documents as required by the consent degree agreement entered in 2002.

The protocol documentation was supposed to be made available by February 2003, so Microsoft is still under the radar for antitrust violations and will be further scrutinized with it’s $44.6 billion offer to takeover Yahoo. Microsoft hopes that having Yahoo under it’s umbrella will help its presence in the Internet online search and advertising market which is currently dominated by Google. The new entity after the merger will control about 33 percent of the U.S. search market. Google currently has a hold over 60 percent of the market.

This announcement helped Yahoo’s sagging stock price by almost 50 percent while Google’s fell more than 8 percent. The justice department said it is interested in reviewing the antitrust issues.

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February 1, 2008 - Posted by | Antitrust

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