YHOO/GOOG Deal Would Be Anti-Competitive - Microsoft

As you might imagine, Microsoft (MSFT) is not enamored with Yahoo (YHOO) playing footsie with Google (GOOG). Here’s a statement Microsoft just issued on the news this afternoon that Yahoo is planning a short test running ads sold by Google against Yahoo search results:

“Any definitive agreement between Yahoo and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo. We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”

Comments

[Mike Cooper]

I don't necessarily disagree with Microsoft here. I just want to point out how similar (recycled) this argument sounds compared to the argument Microsoft used in the anti-trust lawsuit filed by Netscape against Microsoft in the early '90s. When Netscape complained that embedding Internet Explorer in Windows was anticompetitive, Microsoft's argument was "Netscape owns 90% of browser market. How can THEY cry monopoly?" Ofcourse the next two years after that play out exactly as everyone, including Microsoft, knew it would with Microsoft gaining 90% share and driving all commercial competitors out of the business.

The moral: NEVER trust a commercial business to define the term "fair competition" for you. Just don't bother listening. Ever.