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Microsoft has struck a deal with Facebook under which it will use Live search technology for its web search and related sponsored text links.

Microsoft which invested $240 million in October 07, will provide Facebook with Live search API that it will use to integrate both Microsoft’s Web search and its paid search results into the social network’s U.S. site.

Facebook currently uses its own search engine developed in-house, and it does not include results from the Web.

According to the details given by Microsoft’s search unit head Satya Nadella, this deal only includes Facebook’s US website and will be launched in fall this year. Later on strategic partnership between the two companies will be further expanded.

It should be interesting to note that Facebook rival MySpace uses search technology from Google after $900 million deal between the two companies.