Microsoft issued a statement with press this week expressing that it felt a partnership between Google and Yahoo would be anti-competitive and unhealthy for the online search industry. Yahoo announced earlier this week that it will begin testing Google’s AdSense for Search system. If successful, Yahoo will utilize Google’s ad system and display Google text ads within Yahoo’s own search results.

In a statement by Microsoft General Counsel Brad Smith, a Google-Yahoo partnership would consume over 90-percent of the search advertisement market — most of it being in Google’s possession. Prior to this however, Google issued a similar statement, saying that it felt a Microsoft acquisition of Yahoo wold hurt the Internet.

This week has been trifling for Yahoo. Microsoft is stepping up efforts to push Yahoo’s board of directors to accept the unwavering $42-billion USD offer, which never changed. News Corp announced yesterday that it was in talks with Microsoft to utilize MySpace as leverage to assist in buying out Yahoo. Some industry experts say however that Microsoft doesn’t require News Corp’s help since the software giant has large reserves of cash at its disposal.