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Google is ending its bid for an advertising partnership with Yahoo to avoid a lengthy legal battle with regulators.

Google Inc pulled out of a search advertising partnership with Yahoo Inc due to regulatory objections, causing Yahoo shares to rise as investors hoped the move could lead to a resumption of deal talks with Microsoft Corp .

Google said Wednesday it was ending its bid for a joint search advertising partnership with Yahoo to avert a "a protracted legal battle" with regulators.

Under legal pressure, Google has terminated the advertising deal that was created as a substitute for Yahoo being taken over by Microsoft. On the Official Google blog, Chief Legal Officer David Drummond says: after four months of review, including discussions of various possible changes to the agreement, it's clear that government regulators and some advertisers continue to have concerns ...

Internet search engine Google has binned plans for an advertising partnership with internet giant Yahoo rather than fight against opposition from antitrust regulators.