Justice Department To Probe Microsoft Bid For Yahoo

February 4, 2008 9:04 a.m. EST

Washington, DC (AHN) - Although Yahoo has yet to answer Microsoft's $44 billion acquisition bid, the deal is raising eyebrows for U.S. and European regulators. Investigations could mean final approval would have to wait six months, reports said Monday.

The Justice Department confirmed it would investigate the matter. In the past, government regulators have probed Microsoft for antitrust matters, an issue Google attempted to raise this weekend regarding the impact of the software giant possibly buying Internet portal Yahoo.

A European Union spokesperson declined to comment on the potential acquisition, but European regulators have fined Microsoft in the past for what Europe saw as anticompetitive actions.

In 2007, Microsoft was among the groups that called on the U.S. government to scrutinize Google's acquisition of DoubleClick and the effect it might have on the online advertising balance of power.

Any federal inquiries will likely be answered by Microsoft's argument that by combining forces, a Microsoft-Yahoo deal would provide a more equal rival to Internet giant Google, which now is involved in online search, advertising and recently a bid for mobile phone spectrum.