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February 4, 2008

Google upset over Microsoft bid for Yahoo


by Alan Harten
Google upset over Microsoft bid for Yahoo

Google has made its first comments regarding Microsoft’s, proposed $45 billion bid for its rival Yahoo. Google says that there are ‘troubling questions’ regarding the whole future of the Internet.

If accepted, Microsoft’s bid, would undoubtedly put it in a position to have what Google calls an ’overwhelming share’ of such services as instant messaging, and web based e-mail products.
On Google’s own blog, chief legal officer David Drummond stated that “This is about more than simply a financial transaction, one company taking over another. It’s about preserving the underlying principles of the internet: openness and innovation,”

In addition “Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the internet that it did with the PC? While the internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies - and then leverage its dominance into new, adjacent markets.”

He went on to state “Could the acquisition of Yahoo allow Microsoft - despite its legacy of serious legal and regulatory offences - to extend unfair practices from browsers and operating systems to the internet?”

It is likely that the US Department of Justice will become involved, and investigate any proposed deals, on the grounds of antitrust regulations. In Europe, regulatory bodies, are already heavily involved in investigations into many aspects of Microsoft’s businesses. Therefore, it seems reasonable to assume, that they also will take an interest in this new, possible deal.

Microsoft has for some time, made it very clear that it wishes to complete with Google, for a significant share of the vast advertising market available online, of which Google has a lion’s share.

Google itself is expanding its efforts within the Internet advertising market. Having purchased the Doubleclick advertising network last year. It is also expected to get heavily involved with different kinds of Internet advertising, such as, within emails sent via, its Gmail service.

Story link: Google upset over Microsoft bid for Yahoo


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