The two companies were asked for additional information about the Internet search deal last week by the U.S. Justice Department. It is still unknown if the EU will begin its own probe and whether Microsoft and Yahoo need approval from the European Commission or from regulators in each country in the EU.

The deal was designed to help both Microsoft and Yahoo compete against the Godzilla known as Google, the industry leader.

"As we said when the agreement was announced, we anticipated that this deal will be closely reviewed in the U.S. and EU, and discussions in both geographies continue," Microsoft spokesperson Jack Evans said in an e-mail. "We remain hopeful the deal will close in early 2010."

Microsoft indicated that it also has plans to seek approval in other countries such as Korea, Brazil and Taiwan.

Under the deal, Microsoft and Yahoo would have about 30 percent of the search market, making them more attractive to advertisers than before.

According to to Microsoft and Yahoo, a stronger rival is what Google needs and consumers want.

Google currently has 68 percent of the market in the U.S. and 90 percent in Europe.

Yahoo said it's confident the agreement will receive regulatory approval in both the EU and the U.S.

"As we indicated at the time of announcement, the agreement is subject to regulatory approval and Yahoo and Microsoft are engaging in discussions with the regulators in Europe about the agreement," a Yahoo spokesperson told CNET. "Yahoo and Microsoft are committed to engaging positively with the commission about the agreement and firmly believe that the information we will be providing will confirm that this deal is not only good for both companies, but it is also good for advertisers, good for publishers, and good for consumers."