
This is not about Microsoft buying "Yahoo", but about buying Yahoo and all the associated projects that have been bought by yahoo in the past. Flickr, del.ici.ous, Bix, MusicMatch, Zimbra, BlueLithium, DialPad, BuzzTracker and Dogg, the list goes on. Yes, yahoo! also has a search engine, an instant messenger userbase and a cute "question/answer" website to pilfer, but the major impact of the acquisition is in the vast wealth of "free" data microsoft buys with this. Flickr to contribute to the dragonfly project. Del.ici.ous, buzztracker and dogg to contribute to monitoring what's alive in the blogosphere (who invented that word? it's sickening to use). MusicMatch to boost zune, zimbra to be pilfered for outlook, dialpad and yahoo messenger for integration into microsoft's live service and competition to skype (but probably for mysterious reasons just slightly more expensive to use), blue lithium for behaviour network modeling (the xbox divisions will love the data that rolls out of that). Effectively, this is a textbook hostile takeover. Obtain the parent, ransack the children, and in a few years we can expect an silent cancellation of all the projects that have been assimilated by MS but no longer generate new data.
Sadly, the acquisition doens't lead to a monopoly - there are still a handful of competitors left, so the "free market" mechanism that drives capitalism still applies. While morally deplorable, this is the way business works on a global scale. If the investors like the money microsoft offers enough, the deal will go through, regardless of how much the EU wants to stop it - both companies are US based, the EU has no authority in this matter.