Microsoft has begun testing a news service to aggregate headlines from a variety of publications. The new service, MSN Newsbot, is currently targeted at the UK and three European countries during beta testing.

The new service competes with Google News. It’s the first salvo in a bigger war. Microsoft is investing heavily in search technology. It hopes to develop software and services that can search the web as well as your company files and Outlook data in a friendly, intuitive way. Google is constantly testing new services as well, trying to stay ahead. Searching for documents or for information buried in Outlook is currently difficult at best, so there’s lots of room for improvement.