EC will let Microhoo deal go on (probably)
In the US the FCC is looking into the Microsoft / Yahoo deal to see whether or not the deal is bad for competition. In Europe the EC (European Commission) is responsible for this area. They are said to be seeing no problems for letting the deal go through.
The European Union has to look into several details of the deal keeping in mind all the legal juristiction. Legal experts however don't expect any problems because in Europe Microsoft and Yahoo are not competitive enough compared to for example Google. They simply haven't got enough market share.
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