Microsoft maintains tough line on Yahoo

 Posted by Ina Fried

Yahoo and Google have both spoken to regulators about the joint test underway in which Google is serving up ads for a small number of Yahoo’s search queries, Reuters reported on Wednesday.

“We informed the Justice Department before we launched this test and we have been responsive to their questions about it,” Google spokesman Adam Kovacevich told Reuters. Yahoo had a similar comment to the wire service.

Yahoo offered little new detail about the test during its quarterly conference call Tuesday, but positioned it as one of several things the company was exploring as part of efforts to improve its near-term revenue picture.

The Google test comes as Yahoo is under increasing pressure to negotiate with Microsoft or find a viable alternative. Microsoft has given Yahoo until Saturday to come to the negotiating table or face the prospect of a proxy battle.