U.S. senator warns of antitrust issues

WASHINGTON (Reuters) - The 10-year search deal between Yahoo and Microsoft warrants "careful scrutiny," the chairman of the U.S. Senate antitrust panel said on Wednesday.

"The deal between Yahoo and Microsoft -- industry giants and direct competitors in Internet advertising and search markets -- warrants our careful scrutiny," said Sen. Herb Kohl, who chairs the Senate Judiciary Committee's antitrust panel.

Kohl said his panel was concerned about "the potentially far-reaching consequences for consumers and advertisers, and our concern about dampening the innovation we have come to expect from a competitive high-tech industry."

"The implications of this proposed joint agreement will be closely reviewed by my subcommittee," he said.

(Reporting by Diane Bartz; Editing by Derek Caney)