Yahoo-Microsoft have to wait; Google goes unchalleged

JUST WAIT AND WATCH TILL NOD IS GIVEN

The deal which was struck between Yahoo and Microsoft last month in order to pose a united challenge to Google, the world’s largest search engine, may face some bumpy hurdles before getting it operationalised. The duo (Yahoo-Microsoft) had to pass the test of regulators in the USA which looks after the ‘Anti-trust provisions’ in matters of (acquisitions and mergers) A&M, tender offers and other such deals between two companies. This deal made headlines in media across the world because, for the first time, Google is likely to face serious business challenges since its inception.

But before Operationalisation of this huge deal, this has to be approved by Federal Trade commission and Attorney General of Anti-trust division of Justice Department in US administration. All these provisions have been made under a US law, the Hart-Scott-Rodino Anti-trust Improvements Act, 1976, popularly known as HSR Act. This law was drafted by Senators P.A.Hart and H.D. Scott and Representative Peter. W. Rodino to prevent violations of TRUSTS in business transactions like merger and tender offers etc.

Under the provision of the said Law, the concerned companies have to file detailed reports in prescribed manner with the federal regulators within 30 days of such transactions. Yahoo-Microsoft complied with this provision and filed information with the same. The law require filing details of all cash transactions in such deals within 15 days only. In nut shell, this law ensures that no secrecy is maintained which bolsters unhealthy competitions and in which trust is broken. The US’s justice department is empowered under this ACT to seek any further information which it deems necessary with respect to the deal, transactions, operations, partnerships etc and it is only after the approval of the Justice department, the deal can be operationalised. Title III of this HSR Act confers powers on the US justice department to sue any Inc which violates the ‘Trust’ of either the parties or any other stakeholders. The concerned companies can be sued on behalf on any American citizen also by the Justice department, if it feels that Trust of American has been broken.

In the case of this Microsoft-Yahoo deal, the Federal Trade Commission has sought certain more information which has been provided by the duo. The Federal Trade commission is processing the information and seeing to it that terms of agreements between Yahoo and Microsoft would not encourage unhealthy competition or break trust of any stakeholder. They have been kept on ‘stand by’ and are waiting for the results. The waiting period is likely to go up to September, this year and the deal can be made operational only when it is approved and ratified till then the Google will go unchallenged un-chased. The Microsoft-Yahoo thus is left with no option but to wait and watch and of course pray that US Justice department dispense justice with them and gives its nod to go ahead with their plans.