Antitrust senator watching Yahoo/Google link

WASHINGTON Wed Apr 9, 2008 5:04pm EDT

WASHINGTON (Reuters) - A U.S. senator who heads an antitrust subcommittee said on Wednesday that he was watching Yahoo Inc's test tie-up with Google closely "to ensure that it does not harm competition."

Yahoo said on Wednesday it would carry Web search advertising from Google in a test that could put pressure on Microsoft Corp to raise its bid to buy the company.

"We will be following closely the results of the short-term test alliance between Yahoo! and Google," Sen. Herb Kohl, a Wisconsin Democrat, said in a statement. "Should there be moves to make this agreement permanent, we will examine it closely in the Antitrust Subcommittee to ensure that it does not harm competition."

(Reporting by Diane Bartz)

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