Another timely Economist reality check; see the full article for details
From a regulator's point of view, there are two decisions to make. The immediate one—whether to let a Microsoft-Yahoo! tie-up go ahead—is simple enough: creating a more convincing counterweight to Google can only be good for competition. (By contrast, a tie-up between Google and Yahoo! would constitute a worrying concentration of power.) If Microsoft tries any of its old tricks, it should be punished. As for the longer-term question—what to do about Google?—the answer is essentially the same. Like Microsoft, Google has enormous power in its market, so regulatory vigilance is necessary. But so far nobody, despite much grumbling, has shown that Google is abusing that power. So leave Google alone too, and prepare for an epic battle between the two tech titans.