Microsoft’s bid for Yahoo under congressional lens

Having shaken the foundations of the tech industry, Microsoft’s $44 billion bid for Internet giant Yahoo Friday will come under the lens of Congress next week.

{mosads}House Judiciary Committee Chairman John Conyers (D-Mich.) and ranking member Rep. Lamar Smith (R-Texas) announced they will hold a Feb. 8 hearing to examine the proposed merger.

“Microsoft’s bid to acquire Yahoo is certainly one of the largest technology mergers we’ve seen and presents important issues regarding the competitive landscape of the Internet,” said Conyers and Smith in a joint statement. “The Committee will hear from experts who will weigh in on whether this proposed consolidation works to further or undermine the fundamental principles of a competitive Internet.”

Microsoft’s bid for the Sunnyvale, Calif. company, if successful, would give it a solid foothold in the search engine market that has been increasingly dominated by Google. Consumer privacy could also be a major factor when members consider the deal.

Several lawmakers had scrutinized Google’s recent takeover of DoubleClick and will now carefully examine Microsoft’s bid for Yahoo, in both the House and Senate.

“As in our recent examination of the Google/DoubleClick deal, we will need to investigate how this combination affects consumers, advertisers and businesses who increasingly use the internet for their news, commerce and entertainment,” said Sen. Herb Kohl (D-Wis.). “Should Yahoo accept Microsoft’s offer, the subcommittee expects to hold hearings to explore the competitive and privacy implications of the deal.”

Kohl is chairman of the Senate Antitrust Subcommittee.