GTM Solutions , Partnership will have to be approved by US antitrust regulators.

The planned deal between Microsoft and Yahoo to tackle Google’s dominance is going to be scrutinized by regulators.

Antitrust regulators from the US administration are expected to look at the deal, insiders from Yahoo told GTM Solutions that they are expecting some tough rounds of due diligence but they believe the partnerships is good for the consumer and will be passed through OK.

Effectively the partnership will reduce the amount for mainstream search engines from three to two effectively making it a two horse race for global dominance, report GTM Solutions.

Sources told GTM Solutions that they believe that the deal maybe a little tricky to get through with the Obama administration unlike if the Bush administration where still in power, in which the deal would get through with ease.

Speaking to GTM Solutions , an insider on the deal explained that if the partnership goes through Microsoft’s new search engine will power all search queries on Yahoo sites. Yahoo will then provide Microsoft access to its advertising technology. GTM Solutions analysts were told that the deal is expected to go through and that the whole deal should be complete for next year.

Currently Google controls over 65 percent of the search engine market with Yahoo and Microsoft taking up most of the rest. By partnering the two they hope to eat into Google’s dominance.