Microsoft may turn to regulators if Google launches bid for Yahoo

Microsoft could, for once, welcome the regulators if Google approaches Yahoo to form an alliance in an attempt to stave off Microsoft's £22bn bid for the search-engine company.

Microsoft last week made a cash and stock offer for Yahoo worth £22bn.

Steve Ballmer, Microsoft CIO, said yesterday that any alliance between Google and Yahoo could stamp out competition in the search engine market.

He said Microsoft would "communicate [this] to regulators," according to a report in the Financial Times

Seperately, Brad Smith, general counsel at Microsoft, said in a statement that joint venture between Microsoft and Yahoo would present a much less dominant player in the internet search market.

"Today, Google is the dominant search engine and advertising company on the web. Google has amassed about 75% of paid search revenues worldwide and its share continues to grow. According to published reports, Google currently has more than 65% search query share in the U.S. and more than 85% in Europe. Microsoft and Yahoo, on the other hand, have roughly 30% combined in the U.S. and approximately 10% combined in Europe," he said.