Microsoft and Yahoo! are combining forces in an attempt to compete with Google’s colossal 90% share of the search engine market.

Microsoft chief executive, Steve Ballmer, said; “I believe that together, Microsoft and Yahoo! will promote more choice, better value and greater innovation to our customers as well as to advertisers and publishers.”

The deal, which is set to take place in the next few days, will see Microsoft assume control of the Yahoo! search engine.  Microsoft’s Bing search engine will feature on the Yahoo! website.

Yahoo! Chief Executive Officer, Carol Bartz, sees it as a positive that the deal was approved by the Commission. “This breakthrough search alliance means Yahoo! can focus even more on our own innovative search experience, Yahoo! gets to do what we do best: combine our science and technology with compelling content to build personally relevant online experiences for our users and customers.”

Despite the takeover it is thought that Microsoft still have a lot of catching up to do in order to compete with Google. DMG technoly analyst, Chris Green, said; "This deal gives Microsoft a bigger slice of the internet advertising business, but it is still miles and miles behind Google".