Ballmer: Microsoft/Yahoo deal to reach Europe

The search engine partnership between Microsoft and Yahoo will not be limited to the US and will extend all around the world, according to Microsoft’s Steve Ballmer. However, this would depend on regulatory approval.

Earlier this year, Microsoft and Yahoo signed a 10-year global web search partnership to challenge Google, a pact that US and European antitrust regulators are evaluating.

"It's possible that we will extend that partnership (with Yahoo) outside the US," Ballmer told reporters at a news conference. "We will have to wait and see if we can get approval and consummate that partnership inside the US first."

The deal, struck in July, must be approved by regulators in the US and Europe in order to go into effect.

As soon as those regulators give approval, the agreement goes into effect worldwide, although implementation in a specific country would be postponed if regulatory approval is required but not yet obtained. That should not postpone implementation in other places, a Microsoft spokesman said.

Microsoft believes the deal will close in early 2010, and that they can make significant progress on integration in one or two major markets next year.

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