Google Fires Back: Microsoft-Yahoo Deal Raises “Troubling Questions”

Google has posted a missive on Microsoft’s attempted takeover of Yahoo where it cries wolf against the deal based on (I’m serious here) competition grounds.

David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer at Google writes:

…Microsoft’s hostile bid for Yahoo! raises troubling questions. 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.

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.

Could the acquisition of Yahoo! allow Microsoft — despite its legacy of serious legal and regulatory offenses — to extend unfair practices from browsers and operating systems to the Internet? In addition, Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet. Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors’ email, IM, and web-based services?

Google, a company with “an overwhelming share” in text ads and search who can take advantage of its dominant position in search to unfairly limit the ability of consumers to be listed fairly is concerned that Microsoft and Yahoo might do a similar thing with email and IM? cough*lol*cough.

To be fair there may be some legitimate competition concerns with the deal, but Google pointing them out will only serve to remind people (and more importantly Governmental Regulatory Authorities) that it doesn’t matter how much bigger and stronger a combined Microsoft/ Yahoo is, Google is still the 1000 pound internet Gorilla in the room.

Comments

[Tom B:]

Excuse me, when was GOOG convicted for monopolistic behavior? I seem to recall a conviction for MSFT, a few years back, though they never got penalized, because the Bush administration simply opened up an empty bag and Gates poured some big wads of money into it.

2008 Feb 03 05:54 PM

[TA:]

Thomas Barta - do you hold GOOG too or do you just hate MSFT because of AAPL?

2008 Feb 03 07:30 PM

[Tom B:]

I hold GOOG and AAPL as stocks, and probably some MSFT in various mutual funds.

As for "hating" MSFT, their products are simply dreadful, but very difficult to avoid. This probably costs the economy billions of dollars in lost productivity per year. If this isn't a reason to at least "dislike" MSFT, what is? Ever hear of the "productivity paradox"?

2008 Feb 03 09:40 PM

[Smart Look:]

LOL, at Google.

Crybabies. GOOG is not protector of the internet.
I thought the Boeing 757 was the "jump the shark" moment but this tops it.

2008 Feb 03 11:57 PM

[gofer:]

It's funny that Google would be warning against monopolies. After all, Google has become one of the biggest, richest internet companies around today. So I really doubt that they are looking out for the best interest of the internet. Rather, Google has gained a reputation for being very arrogant and insensitive. They're looking out for their own riches.

2008 Feb 04 12:23 AM