Yahoo! and Facebook say they’re now working together on a new advertising partnership and are also settling the ongoing patent dispute between the two companies.

In the future we’re likely to see promotions across both Yahoo! and Facebook, along with deeper Facebook integration on the Yahoo! site.

A new report from O2 has revealed that the average smartphone owner now spends more than 2 hours a day using their phone.

However, voice calls aren’t the main priority for these consumers. 74% of smartphone users use their handsets to take photos, with 71% using their phones for calls. And more time is spent on mobile internet browsing than making phone calls.

Microsoft has agreed to acquire business-focussed social network provider Yammer for $1.2 billion.

Yammer will become part of the Microsoft Office Division and will continue to report to current CEO David Sacks.

Social networking site Twitter is back after a problem that took the web service offline for over an hour yesterday afternoon (5pm BST). In addition to the web issue, mobile Twitter clients weren’t showing new Tweets.

The company described the problem as having been caused by a ‘cascading bug’ in one of its infrastructure components. When this was discovered, Twitter’s software was rolled back to a previous stable version.

Facebook’s App Center, which the company describes as ‘a new place to find social apps’, has now launched on the Facebook web site and via its iOS and Android mobile apps. Announced last month, the App Center is currently only available to customers in the USA.

The App Center features existing Facebook-friendly mobile and web apps as well as new apps. Currently over 600 apps are available, with the service offering personalised recommendations.