A deal may have been done for Yahoo to be powered by Microsoft's Bing – but the two companies will still compete for search audience according to a senior figure.

Prabhakar Raghavan – a Senior Vice President of Yahoo – told reporters that collaboration on the technology of search would not end the lengthy rivalry between the two web giants.

"We are not a version of Bing," Raghavan told reporters.

'Competitors on the front-end'

"We are Yahoo and that will continue... We collaborate on the back-end but we are competitors on the front-end," he added.

The ten-year deal sees Microsoft's AdCentre replace Yahoo's Panama on the latter's search, but Raghavan suggested that an algorithm may or may not choose to show the supplied advert when the Bing engine provides results.

It all smacks a little of Yahoo trying to provide a reason why people should still be using its revamped search rather than move onto Bing and cut out the middle-man.

The deal between the two is expected to kick in next year, with many suggesting that it is no bad thing to have a competitor to the 300 pound gorilla in search – Google.

Via Reuters