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February 3, 2008, 3:51 pm

Google: Will Microsoft monopolize the Internet?

By Todd Woody

SAN FRANCISCO — In a preview of what could shape up to be a fierce antitrust fight over Microsoft’s $45 billion offer for Yahoo, Google’s chief legal officer on Sunday made clear that the search giant would not sit on the sidelines, questioning whether Microsoft would “now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC.”

Writing on the official Google (GOOG) blog, David Drummond, the company’s senior vice president for corporate development and chief legal officer, argued that a combined Microsoft (MSFT) and Yahoo (YHOO) “raises troubling questions” and would pose significant competitiveness issues. “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?” he wrote.

Drummond sketched a future where a MicroHoo controls an “overwhelming share of instant messaging and web e-mail accounts.”

“Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors’ e-mail, IM, and web-based services?” he asked. Making clear that he was directing that rhetorical exercise at regulators in Washington, D.C., and elsewhere, he wrote, “Policymakers around the world need to ask these questions — and consumers deserve satisfying answers.”

Repeatedly calling the software giant’s bid on Friday for an iconic Silicon Valley company “hostile,” Drummond portrayed the Internet itself as at stake. “This is about more than simply a financial transaction, one company taking over another,” he wrote. “It’s about preserving the underlying principles of the Internet: openness and innovation.”

Of course, as Google has expanded its hold over the Internet through its dominance of search and online advertising, observers have questioned whether the Mountain View, Calif., company itself poses a Microsoftian threat to online openness. In fact, on Friday a number of Silicon Valley movers and shakers welcomed the Microsoft offer for Yahoo as a potential counterweight to Google’s ambitions.

In his blog post, Drummond also seemed to signal Google’s interest in a white knight riding to its Silicon Valley rival’s rescue. “We believe that the interests of Internet users come first — and should come first — as the merits of this proposed acquisition are examined and alternatives explored.”

The Wall Street Journal and New York Times are reporting that Google CEO Eric Schmidt called Yahoo chief Jerry Yang on Friday to offer help in fending off Microsoft’s takeover bid.

A Google spokesperson said that the company would have no further comment “for the time being.”

Agree, yahoo as an independent would be sad loss. But amazed at Google…who is trying to take over the world? Google has a plan of dominance themselves. They learned it from Microsoft. Own the information and you own the web. Nope, I dont think Google is the best search engine – lots of returns, very little relevance for what I search for. I think they are a fad, hopefully not a fad we all regret.

Posted By RD, Melbourne, FL : February 9, 2008 4:15 pm

I think that no real monopoly can be make if microsoft take over yahoo , because it is the free will that everyone of us consider google the best search engine or not .If windows puts the home page of search engine of MSN we can change it , what i’m trying to say is that
LET MICROSOFT TAKE YAHOO AND LET SEE WHAT THEY CAN DO FOR GOOGLE COMPETITION . new products new features new revolution !

Posted By Cristian ,Braila,Romania : February 9, 2008 1:58 am

If this merger goes through, this will keep Google on their toes as well as every other competitor, which will hopefully bring out the best talents in sustaining or surpassing the current internet technologies. So, Let the game of internet-wits begin!

Posted By Matt, Irwindale CA : February 8, 2008 7:09 pm

This is good for Microsoft, just think the differance will be that they will put some tags in the operating systems thus holding Google on the sideline of the search (automatic Yahoo search)

Posted By collectselltrade.com ca. : February 8, 2008 6:30 pm

Oh give me a break Google. You guys have increased your monopoly across the internet to an alarming degree. Microsoft combined with Yahoo is a great chance for the tables to be balanced and for Google to actually have some decent competition.

Posted By Matt, Kirkland, WA : February 8, 2008 5:38 pm

I’ve been waiting for this type of power move for quite some time. This could end up being one of the best things to happen to online retailers. You just don’t realize the stranglehold that google has in this arena until you have to start paying a steep price for it. In my arena, google adwords are running $3 to $4 per click. That’s right! $3 to $4 everytime someone clicks thru to my site. At that rate it won’t be long before I’ll have to start selling drugs in order to pay for the advertising! And no, I’m not in the porn industry either…

Posted By Emil, Ponce Inlet, Florida : February 8, 2008 4:57 pm

for all you google freek’s. Remember this. If Microsoft did not do what they did in the 80’s there would not be a GOOGLE today. I like google i think there the best at what they do. Why do people care so much about what Microsoft is doing. If you dont like it you put up the money or shut up.

Posted By chase seattle wa : February 8, 2008 1:20 am

Google is taking a defensive position in order to secure their dominance on the web. Microsoft is behind Yahoo and far behind Google in search and online advertising, together MicroHoo would pose a larger threat to Google and Google does not want that.

Posted By Anthony, Whitewater, WI : February 7, 2008 4:48 pm

The management of large corporations – like Microsoft – give no thought to concepts like “free market,” “competition,” “the consumer’s right to purchase the best product,” etc. They believe that every possible action that can result in increased revenue is appropriate. They regard us, their customers, much as a rancher regards his cattle – as a revenue source. The rancher spends little time thinking about the happiness of his herd.

For exactly the same reasons, Google’s motivation has nothing to do with preserving the purity of the Internet or making the world a better place. Court action has had a long tradition in the computer and software industries, ever since IBM sued the inventors of the first computer, Eckert and Mauchly, back in the fifties. The best way to slow down a competitor is to tie his product up in patent court or in an anti-trust action as long as possible.

A few consumers out there may be true believers, but not the corporate guys. You have to remember that most of corporate management comes from some College of Business somewhere and many of them can barely figure out how to read their email. They would just as happy selling shoe polish as software.

Posted By Terry, El Paso, TX : February 7, 2008 4:39 pm

Todd:

With the majority of comments posted here and across America’s blogs being against the hostile takeover, I am curious “who” these “movers and shakers” (your words) in Silicon Valley are? If you mean Microsoft supply chain companies, then say so, please. I am for M & A as much as the next guy (especially as an investor), but monopoly (even loosely defined) serves nobody and creates the kind of volatility in markets we are witnessing today.

Posted By Abe, NY, NY : February 7, 2008 3:18 pm

It would seem that this debacle is over two corporate giants calling each other’s hand over who gets to be king of the sandbox on the playground.
Since when has the upstart Google had nothing but lily-white intentions over their (rumored) future plans?
While a lot of us don’t agree with Microsoft’s strategies, I too, have to laud their efforts if for no other reason than to keep yet another giant in check.
To me it would seem that this is a scenario where what is good for one player will have to be good for ANY other player.

Posted By James M. Guidry – Butte, MT : February 6, 2008 7:42 pm

Microsoft will go down with the ship. These people are pretending that the internet community are sheep. Yahoo, Google, and Microsoft are NOT the only search engines on the web. Lycos and Altavista still exist. I have no used anything besides google in years because it is the best search engine. If microsoft acquires Yahoo, so be it. Yahoo has the most annoying advertising and such, they are second to AOL. I’m surprised yahoo still even exists to be honest, they barely survived the dot com bubble burst and pretty much if I was them, I would’ve been out of the game and on vacation in Taihiti long ago. Take the 44 billion, the internet will survive. Sheesh where was yahoo back in 1992 when I was using gopher? I’m not even very old. I think yahoo just has a big head and it is laughable that google has any interest.

Posted By Mark, San Francisco CA : February 6, 2008 5:34 pm

Yahoo! needs to take a jolt, their attitude has been there, done that; let’s do lunch! Microsoft’s takeover will get the thought processes up to speed for survival of the survivor’s of Yahoo! Gotta happen!!!

Posted By Peter Miller, Middleton, Nova Scotia : February 6, 2008 2:29 pm

I totally disagree. Microsoft simply does NOT have the competitive advantage online to leverage in the way that it does using its OS.
Google doesn’t need to take this kind of defensive position.

- Shelon Padmore

Posted By Shelon Padmore, Btooklyn, NY : February 6, 2008 1:33 pm

Yahoo has so many properties that Google can’t touch. Why pull out now? Seems that there are alternatives in business.
Seeing a business that is about emerge as a full player is something to watch out for too. 411ForTravel.com is getting ready
to release a search engine of information that will impress consumers. Yahoo should partner with 411ForTravel now while they can inexpensively
or before someone else does. That seems like good business.

Posted By JAMM, Sranton, Pa : February 6, 2008 12:22 pm

Netscape, Sun, and countless others’ requests for help/oversight have failed in the past–even though Sun (and a few other companies) won its case. Google could win the battle and lose the war taking this kind of approach.

Microsoft drew blood first, and I think Google should counter Microsoft’s action invoking the adage, “the best defense is a strong offense.”

Google should counter Microsoft’s move by making some “no more Mr Nice guy” moves of their own: 1) acquire Wind River Systems, and 2) announce merger talks with Apple and/or Sun.

Doing this would enable Google to create new synergies of its own that will counter-attack Microsoft on its own turf.

Posted By dp2 NoVa VA : February 6, 2008 9:53 am

Competition is always good. Three years ago I used Yahoo Search Engine and the last three years I really prefer Google. This is do to Google’s devotion to giving it’s customers the best quick “answers” or “choices” of what they are most likely looking for. Without competition, there wouldn’t be this need to be the BEST and this would just bring mediocre results. America loves and expects competition. If Microsoft does merge with Yahoo and this creates an unfair monopoly on to unfairly limit the ability of consumers to freely access competitors’ e-mail, IM, and web-based services then I hope and believe that this would be bad for the entire World Wide Web. We at http://www.ABusinessStore.com would like the Congress to closely monitor the advantages that such a large “monopolized” merger has on future hardware & software sales, and most importantly what “restrictions” this imposes on its usages and “freedom”.

Posted By Patrick Benadum, Austin, Texas : February 6, 2008 12:46 am

IBM is still alive even though Microsoft, Google, and Yahoo are all of the rage. I just thought that companies should be in it for the long term instead of trying to being the ‘flavor-of-the-month’. Technology is forever changing and companies should not get into control issues.

Posted By Yadgyu, Harkeyville, TX : February 5, 2008 11:37 pm

The simple fact is Microsoft and Google are both a business. And a business needs to make money to keep from going out of business. Both will do whatever is absolutely necessary to secure their future. Both companies are positioning themselves for what is only an inevitable showdown for survival. Consumer demand for the superior product will ultimately determine the winner.

Posted By Bill Board, Blue Balls, Pa : February 5, 2008 10:37 pm

Microsoft like I tell my friends is trying to take over everything and it just isn’t right. It gives them a monopoly because they automatically stick in my face their instant messenger, before google or yahoo have a chance to even introduce their’s. Its just outright not fair. Punkbuster is needed.
http://squidoo.com/condolife

Posted By Brett McCluskey, San Bernardino CA : February 5, 2008 8:13 pm

Is this not the pot calling the kettle black. Google has 88% of its market share. What makes a monoply 90%, 95% ?
I am not saying if it bad or good It is what it is. What is the right answer? When the fed broke up Ma Bell did it really do any good? Or did it cost consumers more money for the same service.

Posted By Bob Smith Charlotte, NC : February 5, 2008 4:00 pm

Google, repeat after me: Competition is healthy, healthy, healthy, healthy, heal************************************************************************************************************thy!!

Posted By Norm, San Diego : February 5, 2008 3:58 pm

my opinion of the microsoft infusion with yahoo would actually offset the greedy people who have made and lost millions playing google’s game. this is what our economy needs is someone who is dedicated too continue to improve the internet in it’s capacity without total greed . it won;t hurt google to be kicked down a notch or two to help the economy as a whole instead of putting money in a few pockets. this will create a back lash that will make a even flwo of net income too all people. remember this the rich get rich! by stepping on people that are the ones that feed this country. its time to eliminate the greedy factions and grow up.

Posted By lou. denison texas : February 5, 2008 3:25 pm

Google=a search engine

used by most to conduct actual searches, then users surf back to:

Yahoo=personal homepage, news, email, calendar, personal life management tool.

Besides being enormous in size and in the past several years growing at exceptional rate Google can not sustain the momentum. As I said before: unless Google starts acquiring to spread and conglometarize across the industries it can not and will not sustain this growth, even then it will slow dramatically. Price/share reflects growth potential among other factors, Google at this rate does not have great growth potential.
Microsoft+Yahoo, will trump them. It is experienced technology and internet experience and both are stable profitable companies and are among the leaders in their industry.

Where is Google going to go?
what will they acquire, Sandisk?
I can not imagine the restructuring changes you need to make to have Google continue their growth and be ale to effectively compete with Micro-hoo.
That is Microsoft will acquire Yahoo=Microhoo
lol

http://ilyailienko.blogspot.com/

Posted By Ilya Ilienko, New York, NY : February 5, 2008 3:10 pm

Wow, Drummond needs to stop his senseless drivel. His company, GOOGLE, is the one with a near monopoly on the internet where it actually matters – SEARCH. They have over 60% of the market! Heck, with this acquisition, MSFT is still only a secondary player. Who cares about email? People have plenty of choices beyond MSFT, Yahoo, and Google – often including their ISP provider like Comcast. This sounds like Google is scared that MSFT is finally going to fight back in the area where Google has been beating up on them – the Internet Search domain.

Posted By Russ, Boston, MA : February 5, 2008 1:06 pm

Awww. You mean Google is threatened by this? Microsoft shouldn’t use its money to create additional competitive advantage? Google doesn’t want to have serious competition?

If this blog letter and subsequent “offer of assistance” came from a source other than the one company that stands to be threatened by a MSFT/YHOO combo, it might actually mean something.

The fact is, Google works better than Yahoo. I haven’t used Yahoo for search for years. I won’t unless it becomes a better tool. If Microsoft’s assistance can improve it so it is better than Google, then Google deserves to lose my patronage.

It is doubly sad that the media is reporting a strategic competitive tactic as news. News would be to get information on the fears this has instilled in Google Execs. Put that in your blog, Drummond.

Posted By Kelly L, LA CA : February 5, 2008 12:30 pm

Monopoly in any place is not good for competition. However, by agreeing to buy Yahoo, Microsoft and its CEO Balmer agreed that they don’t have the technological abilities to fight GOOGLE in the free world of internet. MS should remember that they are real NUTS in the free world !!!

Posted By siva, Morrisville, nc : February 5, 2008 12:06 pm

The conflict works both ways, if Google was in the same position, their decisions would be questioned as well. I think if Google had the same chance as Microsoft, they would monopolize the internet as soon as possible. Don’t get me wrong, Google is amazing, but it’s all a matter of enough is never enough for these corporations.

Posted By Dakota, Grand Junction, CO : February 5, 2008 10:06 am

I blogged my opinions here, but I’d love to hear others view on the matter.

http://carolinaregion.blogspot.com/2008/02/what-your-view-on-microsoftyahoo-bid.html

Posted By carolinaregion : February 5, 2008 9:21 am

Read all these notes. Nobody is “getting it”. Google is a dominant player, yes. Microsoft is a dominant player, yes. What is at stake is what is about to happen to Yahoo. Yahoo offered a very low cost music service (newly deceased, not M$ fault). Yahoo has supported Open Format initiatives. Yahoo offered email unencumbered with the “MS Live” hotmail trappings. Yahoo is going to be turned into another Microsoft beheamoth, and begin to act the way M$ is famous for. At least, more like a Google, with more incompatible proprietary new “initiatives”. Your net options will further diminish, not improve.

Posted By Ken, Nashua, NH : February 5, 2008 8:31 am

I post this with the hope it will actually get up because I saw the funniest post. Somebody actually accused M$ of innovating. NOT! If M$ can’t beat it, they buy it. If they can’t buy it, they try to strangle it. And if you don’t believe me, I have the facts on my side. Why not spend 6 seconds GOOGLING all the nice anti competitive and false advertising type lawsuits M$ has been slapped with in just the past year.

As for Net Neutrality, Google offers you a service in exchange for having adverts on your screen. You don’t complain if the plumber charges you to use his/her service, why complain when an online company does? Did you expect that the servers and electricity and payroll are all taken care of by the tooth fairy? Get real. A free service must be paid for by somebody and at least Google only uses text ads, not bandwidth hogging, noise polluting, computer crashing java or flash ads.

Posted By soulsabr, Dallas, TEXAS : February 5, 2008 8:17 am

I think people should cast their minds back to Google’s first days, then if you wanted to search for, say remote sensing on Yahoo or any other search engine you had to wade through pages of porn sites. Along came Google, at last a simple search quickly yielded useful results in an uncluttered interface. Microsoft despite all its enormous resources has failed to match that impact, and the same is true of Yahoo. There may be some technological synergy in this proposed merger but the prime benefit, if there is to be one, will come from increased control through Microsoft’s 90% control of the gateway to the internet. Microsoft has a proven history of utilising its near monopoly to injure competing businesses and limit its exposure to fair competition. Google is absolutely right to fight this merger as would Microsoft and many other companies if it were Google threatening to buy Yahoo. If there is a problem for companies in competing with Google it probably comes from the excessive protection offered by intelectual property rights, Software or business process inovation usually gives a fairly rapid payback on investment when compared to the investment horizons of antibiotic devlopment, yet patent protection lasts as long. So if there is a problem with Google’s growing a monopoly then the way to deal with it is by increasing its exposure to competition by reducing software and business process patent protection to five years.

Posted By Robert Hardy Cambridge UK : February 5, 2008 6:33 am

A historical note to a posting by St. Paul, MN.

Bill Gates did not “throw Apple a lifeline”. Microsoft was caught red handed with video code in their Windows Media Player that was developed by Canyon Software (San Francisco) for Apple QuickTime.

The M$ stock purchase and the agreement to deliver Office on the Mac for 5 years was the negotiated settlement to not send this to court with a public display of the thievery. M$ was able to deliver their crummy player and save embarrassment, plus not be fined and delayed a year while they actually wrote their own video/ media player.

If anything Apple threw the lifeline that was mutually beneficial.

Posted By larsonst San Diego CA : February 4, 2008 5:44 pm

Google is full of it. The combination of these two companies will still be a distant second them in search and online advertising. They should accept this deal for the gift horse it is since, it could keep regulators off their backs, and stop fearing the potential competion.

Posted By macdisser,bronx,new york : February 4, 2008 4:46 pm

Google is by far the most powerful entity on the Internet. Microsoft’s dominance on PC market is not Google’s business. Google is like saying, Microsoft you stay in the PC stuff. We don’t want you to even be able to compete with us on the Internet from afar. That is sick!

Posted By Steve, Edison, NJ : February 4, 2008 2:51 pm

No Google is playing the game. They know that if they cry wolf about MSFT then someone will try and stop it and it puts off the acquisition that much longer. I say let people do what they can. If you can’t compete, its your own fault.

Posted By Mark Overland Park KS : February 4, 2008 1:54 pm

And that is so ture St. Paul from MN.
Microsoft is the good one, and not Google. Go for it Yahoo!

Posted By lhoward, Md : February 4, 2008 1:26 pm

I think Google is just posturing, hoping to catch the eye of regulators so that Microsoft can add high legal bills to the cost of this acquisition. They are probably really happy about the dealt because of the chaos it will wreak on its two biggest competitors. I thought Microsoft was a software company, not an online search company? Talk about losing focus. With Apple PC market share approaching 10%, they should be developing their core products and listening to their customers, not over investing in bloated Internet conglomerate needs quite a bit of work before being worth that price. Look what happened to AOL and HP after their overly ambitious mergers. They will waste two years trying to digest company instead of investing in improving their own technology which allow them to compete better. Ballmer, it is time to go. You are the next Fiorina…

Posted By Steve, Santa Clara, CA : February 4, 2008 1:07 pm

Once ISP start charging per bandwidth like they’re already testing in different US cities Google is going down that’s why they are so in favor of Net Neutrality because they want to flood your screen with advertisement and don’t pay for it. Guess what ISPs are going to charge you for all that advertisement when they start charging per usage instead of unlimited bandwidth. And I don’t know you but I ain’t going to pay for their jet fuel. Plus Google doesn’t charge anything because they have all your information and they sell it or use it to make money.

Posted By Steven : February 4, 2008 12:42 pm

Google Is just trying to SAVE itself from being falling behind! Good in no way cares about “saving the internet” or “saving peoples choice”! They realize “MicroHoo” Could end up more powerful to them, or that they could not compete! Sorry Google! I APPROVE The Microsoft/Yahoo Deal and am excited to see what comes of it! Further more, were does Google get there “we must preserve peoples option to choose”! Even if micro/yahoo merge, ill still get to choose if i want yahoo or msn, and i can still choose from many search clients and messenger programs. Google is making it seem like Msn, Yahoo, Aol and google are the only places i have to choose from!
Google is not interesting in anything but making sure they can still compete

Posted By Brandon, Racine Wisconsin : February 4, 2008 12:11 pm

Actually Microsoft isn’t bad at all, if you people didn’t go out and buy a dell with windows on it, their share in the market wouldn’t be as high. Microsoft did innovate, that’s why we have the net and computers in general. Windows 95 started it all by allowing the gooy interface which you people say has only come from other people and enjoy everyday. Innovation comes from everybody whether it’s buying a company of different sorts or making up stuff as you go *innovation*. Microsoft has made alot of the products that we use everyday. Ever hear of analogue controlers? I should put it this way…. *six-axis or the sensitive Wii-mote that the Nintendo uses? Ummm Microsoft has and they invented it and in fact Microsoft invented the first sensitive mouse in 1998 in which Nintendo uses in their so called *Wii-Mote. You can’t become a large company like they are without knowing how to do business or having no innovation. Everyone says that Microsoft has all these anti-trust lawsuits and it serves them right. Actually Microsoft does develope the technologies that companies have a problem with. Microsoft even goes out to patent them and get a patent. Then the other company complains and wins the court case cause everyone favors the smaller guy. Everyone fears the big guy because he knows what to do in any financial situation. If I could whine and claim Microsoft was impeding me, I would and gladly take $200 million. I would dislike a company giant that makes billions because I only make about $8k a year cause I’m in college, but I would strongly suggest that instead of saying Microsoft goes out and buys companies just to rule over you….. just remember one thing….. Microsoft helped start the DotCom stock boom and helped start up the internet when Apple was about die as a company in which in 1998 Bill Gates threw a life line to help them get back on their feet, and they helped start it all.

Posted By St. Paul, MN : February 4, 2008 11:32 am

Google is trying to be a real monopoly. They have some strange policies about their adsense. They ban publishers for clicking on the ads and will not allow appeals. At the same time they let big ad groups like doubleclick, valueclick syndicate their ads and place on the same sites they had banned. What kind of system they have. They do not give a second chance to publishers who has corrected the problems. They are the biggest spam advertisers as they will allow any domain to be hosted with just their ads and all they are expecting is clicks most of them are fraud.

George V

Posted By George V, San Jose, CA : February 4, 2008 11:19 am

Of course google wants to be part of this… Its simple logic, force your competitor to overbid and overpay. Why not? If they get involved MSFT will be forced to add billions more to the price.

Posted By gerber, nyc, ny : February 4, 2008 10:45 am

People use Google because they are the best for now. People use Microsoft because they are not too bad but the cost of switching is very high. There is virtually no cost of switching from Google to somebody else. Microsoft cannot control the Internet unless they specifically disallow user from putting in “google” in IE.

Posted By King of Prussia : February 4, 2008 10:44 am

the seriousness of this article is laughable. this an attempt to cry wolf becuase Google enjoyed so much momentum that its shaking in it boots in regards to facing some real competition. If look in that of is this a monopoly waiting to happen that would be a farse. If we look at the medium of online advertising and search. You can argue that Google is exhibiting tendancies of a monopoly. So looking at the online advertising and marketing there are enough little to medium size guys out there to offer many people the opportunity to choose providers, advertisers and marketers ans people willfully choose. This is a cheap shot by Google to point the finger at Microsoft verses looking internally an actually develop something that leads to a truely competitive market.

Posted By Jason, Chicago, IL : February 4, 2008 10:38 am

Wont change anything except that Yahoo gets shelved like Netscape. Google needs to relax and watch this giant go down. I like Microsoft products but when vista came out, time to move on. MSN is attrociously censored. Time to wake up Microsoft and stop dictating what we want.

Posted By Russ Atlanta : February 4, 2008 10:33 am

Simply put. I believe google has largely monopolized the relm of the search engines and internet advertisements for a very long time now and they deserve some competition. The merger will add some fairness to this domain of business.

Posted By sid, cincy, ohio : February 4, 2008 10:11 am

the two should have a celebrity death match.

Posted By Peter : February 4, 2008 10:08 am

How big is too big? It seems everyone gets worked up about the bigger guys “getting bigger” but in reality they are providing what we want. If a merger increases our ability to “get the job done” easier then they are doing what we demand. Look at Wal-Mart. Even though they have driven the small guys out of business we all still shop there because of their low prices. We demand it and they supply it.

http://www.mtstn.com

Posted By Mark, Jackson, TN : February 4, 2008 10:02 am

This proposed merger will limit the competition in the search engine arena. It may not be the best scenario for companies looking to advertise, or perhaps the consumer in the long run.

At one time, search engines delivered a cost effective means for companies to advertise their products and services. Search words gave you relevant information and results.

But search engines changed their approach to skew the “results ranking” as the market grew. Now the search results are often less about relevancy and more about who is willing to pay the most for the highest ranking. The ever changing and complex mathematical algorithms push advertisers to the Sponsored Links. But that has become a very expensive proposition. It wasn’t long ago that $.25 per click would get a decent position on a Sponsored Link. Now the cost is more than $10 per click for many segments of the market. Certainly an expensive approach and with questionable results.

It will be interesting to see how this plays out. These three search engines are virtual money machines and there are billions at stake in the war for your wallet.

YourTechWizard.com

Posted By YourTechWizard, Fort Lauderdale, Florida : February 4, 2008 9:43 am

I will always use Google as my first choice for Search unless Google somehow regresses, not because of Microsoft.

http://www.zapfire.com

Posted By Ron, Nashville, Tennessee : February 4, 2008 8:57 am

This is all just laughable, and I will all the way to the bank. What it will boil down to is a bidding war over Yahoo. now at $28.38 and climbing. $45 billion is a lot of cabbage, any CEO that is in the straights Yahoo is in and turns his nose up at that godsend would be out on his ass for maleficence. Call options at or above $28 are looking very attractive to me right now! I don’t know how hard or how long the push will last but count me in.

Posted By Poppacross, Wuakee, Iowa : February 4, 2008 7:30 am

This is becoming a common tactic of Google….. whine, whine, whine! As soon as a bump in the road appears (someone interfering with their master plan of internet dominance) they want to re-invent the road! Jimmy Neutron is it? Yeah, let’s call it the “Jimmy Neutron Syndrome”. They stomp and scream in the corner like a two year old because someone else wants to play in their sandbox. Maybe they’ll get further ahead selling out in a Chinese sandbox. The gays, err, guys at Google enjoy being on top, but they’ve yet to learn what it’s like to have competition so they take the whining legal route and scream that it’s competitor is forming a monopoly. What they call monopoly, most people call competition.

Posted By Brian, Pittsburgh PA : February 4, 2008 7:19 am

There will be no antitrust, Google is number one search engine and internet company, Yahoo + Microsoft with Google around is just a fair competition. It will be fun.

http://www.tagaAmerica.com

Posted By emerson*** dallas, tx : February 4, 2008 6:50 am

I think that Google should allow M’soft to buy Yahoo without any opposition.

Hopefuly it will bite off more than it can chew, and will sink in the process. Even if Microsoft is able to pull-off a successfull integration, the technology that they will acquire will not be sufficient to counter Google. They will just die a slower death.

People seem to have forgotten how evil Microsoft is. They have killed any competition either by unfair business practices or through outright money power. All the companies that we have loved (think Netscape, etc) have been ruthlessly eliminated by M’soft just to preserve their dominance.

They have never innovated anything. Only ever played catch-up. And then tried to dominate the market, which then allows them to charge consumers an exhorbitant price.

Then there is Google. A company built solely on innovation. Which gives quality stuff away free and has always followed fair business practices. And we want to side with Microsoft?

Sure, at the moment they have huge power over the net, and as a result, our lives. But unlike in the case of M’soft, have we ever had the need to complain? I am certain the next technology will come along and reduce their dominance. But I will still want them around.

Microsoft is hurting for the first time, with a rival they will be unable to beat. This is the last chance we have to get rid of them. Their time is up.

Dont worry Google, let Microsoft buy Yahoo! Anyway both companies have become irrelevant. It will be sad to see the end of Yahoo, but they will be sacrificing their life to rid us of M’soft, and thereby safeguarding the one thing they cherish the most, that they represent. The net!

Posted By Ananth, Bangalore, India. : February 4, 2008 5:04 am

I think that Google should allow M’soft to buy Yahoo without any opposition.

Hopefuly it will bite off more than it can chew, and will sink in the process. Even if Microsoft is able to pull-off a successfull integration, the technology that they will acquire will not be sufficient to counter Google. They will just die a slower death.

People seem to have forgotten how evil Microsoft is. They have killed any competition either by unfair business practices or through outright money power. All the companies that we have loved (think Netscape, etc) have been ruthlessly eliminated by M’soft just to preserve their dominance.

They have never innovated anything. Only ever played catch-up. And then tried to dominate the market, which then allows them to charge consumers an exhorbitant price.

Then there is Google. A company built solely on innovation. Which gives quality stuff away free and has always followed fair business practices. And we want to side with Microsoft?

Sure, at the moment they have huge power over the net, and as a result, our lives. But unlike in the case of M’soft, have we ever had the need to complain? I am certain the next technology will come along and reduce their dominance. But I will still want them around.

Microsoft is hurting for the first time, with a rival they will be unable to beat. This is the last chance we have to get rid of them. Their time is up.

Dont worry Google, let Microsoft buy Yahoo! Anyway both companies have become irrelevant. It will be sad to see the end of Yahoo, but they will be sacrificing their life to rid us of M’soft, and thereby safeguarding the one thing they cherish the most, that they represent. The net!

Posted By Ananth, Bangalore, India. : February 4, 2008 5:02 am

Google is not monopolizing anything in the way microsoft did.. I don’t even understand the comparison. Having a large part of the market is due to users preferring it to others… not like microsoft that just about shoved our faces in their services making us use it. You’re all comparing apples to oranges. And btw.. if you haven’t noticed.. Google is a big boy playing the big boys game… that’s why microsoft is so scared.

Posted By bird, san jose, ca : February 4, 2008 3:51 am

Since when has Microsoft made an acquisition they didn’t ruin? Remember Hotmail? Yahoo and Microsoft are fundamentally incompatible. Yahoo is entirely open source/open standards based, and Microsoft insists their acquisitions use their proprietary, scalability-limited technology.

Microsoft will destroy Yahoo in fairly short order. Google should be cheering for this, as it will remove their strongest competitor from the game. Their best strategy would be to just keep quiet about it.

Posted By Orac, Seattle, WA : February 4, 2008 3:43 am

As a Web surfer, I believe this merger merits being worried.

First, M$ repeatedly finds itself in court for monopoly mis-deeds and Google has not.

If you want powerful competition; good for you. With M$ in the game dirty tricks and customer abuse are the probable outcome. I wish this was only paranoia, but M$ history is full of such cases.

Over the last decade Microsoft has repeatedly operated in ways that lock in consumers (proprietary technologies, DRM, etc), and interfere with interoperability between platforms and other company’s software. The result often is the choice of going the M$ way or the highway.

A reasonable example is that it would be simple to gradually make M$ Yahoo! break with browsers other than I.E. That would eventually put Macs, Linux, and all others on the outside, looking in. Watch for a M$ Yahoo! That will only play M$ Silverlight files and refuses to play the very popular standard Adobe Flash movies.

This is not how it works today between Google and Yahoo! And the choice would be to buy a M$ PC or pound sand.

Naturally we could expect M$ to claim “innovation” and “superior” technical standards. However that was not true when M$ repeatedly tried to submarine QuickTime (stolen Apple video code, etc.), hijack Sun Java (lawsuits) and what M$ is trying to do to do today with open standards XML.

Another historical example was the M$ scheme for collecting tiny micro-charges for all Web surfing? Half-penny here, tenth-penny there, billions all together, Luckily they were slow footed and the Web got too far ahead of them. That time.

I believe that M$ is interested in buying Yahoo! to powerfully advance their agenda of monetizing your Web surfing, by gradually handcuffing you to their technologies. Sure you can quit Yahoo!, but why go into this knowing about the M$ past?

Posted By larsonst San Diego CA : February 4, 2008 2:55 am

looks like google is already scared..its gonna be fun once microsoft buy’s yahoo…i seriously think this is so sissy of google to cry foul on microsoft’s bid… google is already sucking so much money from local economies and making many jobless…but they building fancy buildings n facilities for their employees..and Mr.Drummond where are u caring abt normal internet user’s interest ?? u just worried abt ur company’s growth and ur employees facilities…

Posted By Rohit,Dallas,TX : February 4, 2008 2:43 am

looks like google is already scares gonna be fun…i seriously think this is so sissy of google to cry fall on microsoft’s bid….

Posted By Rohit,Dallas,Tx : February 4, 2008 2:38 am

My biggest concern is that Microsoft has been on the Internet longer than Yahoo! or Google and they’ve continually and repeatedly failed to impress. If MSN wasn’t bundled with all things Microsoft, it would have faded away to obscurity years ago. What will happen to Yahoo! once those robotic stiffs get their hands on it?

David
http://www.iinnovators.com

Posted By David, Los Angeles, CA : February 4, 2008 2:22 am

So far, if Google is a monopolist, no one has pointed to an illegal monopolistic practice.

Microsoft, on the other hand, has had a business model of using its operating system (legal) monopoly for anticompetitive purposes:

First, it bought Netscape, and basically shelved it. (So everyone would use IE).

Then, it tied Windows to IE — by hiding the buttons to switch to another browser (the anticompetitive part).

Then, it licensed the universal web language, Java, and polluted it so that it would only work with Microsoft programming language. That meant other web programs were disadvantaged, and was anticompetitive.

Just to finish up the concept — it bought Facebook, and foisted a “all your friends automatically know everything you buy” program on the uses, again demonstrating lack of respect for the customer. This wasn’t anticompetitive, perhaps. It was consistent with the Microsoft-centric philosophy.

One scenario: Microsoft will convert all Yahoo mail and calendar to Outlook — so you have to sync using a Microsoft platform. This will basically make Yahoo the new Windows: All user tools associated with Yahoo will be polluted to be tied to Microsoft.

Microsoft has great products, no doubt. And it will go down in history as a world-changing company. But Google is right to be concerned about antitrust if Microsoft turns Yahoo into Windows-on-the-web.

Posted By Swing voter, Ventura County, California : February 4, 2008 1:46 am

One word. Firefox.
Explorer, talk about having users by the balls.

Posted By Anon, Small Fish, California : February 4, 2008 1:46 am

Steve Ballmer is out of his mind Microsoft is about 20 years from being dissolved, why would Google be concerned at all? The thing I like about Google is they innovate WITHOUT competition. Generally Google is good for the internet and frankly I am quite surprised to read all the anti-Google comments……I mean who the hell else is fighting for net neutrality AND is a fortune 500 internet company, they are looking out for us (mankind) and I firmly believe this is a company that is attempting to make the human race better off.

Posted By Bob Samson Louisville, Ky : February 4, 2008 1:44 am

Google, where would you be without Microsoft?

Posted By Rich G, Redington Beach, Florida : February 4, 2008 1:19 am

While I’m going to refrain to comment on the article itself, it is interesting to see that fellow commentators seem to be pulling market statistics from every which way, 58% here, at least 80% there.

What’s with the uncorroborated statistics? If you’re going to quote the math, at least get it right.

Posted By John, Toronto, Canada. : February 4, 2008 1:12 am

YouTube breaks every copyright and piracy law around. Antitrust? pfff could Google be any more dense.

Posted By Zach, Patagonia Arizona : February 4, 2008 1:07 am

so Google is upset. Microsoft is capitalizing and i for one support Google. If Microsoft took over the internet everything would work like Vista and we all know what a failure that operating system is.

Posted By AdmiralZ, North Branch, MN : February 4, 2008 12:59 am

Google is a information monoply and in bed with the chinese censors.

Google needs to be broken up, I will write reps in Washington.

Posted By Joe Tampa fl : February 4, 2008 12:52 am

I’d take an American Icon any day over a foreigner(come on bill gates!!)

Posted By cathy, woodland park colorado : February 4, 2008 12:37 am

Yahoo was on the ropes and Microsoft needed their “space”.
The beauty of living in the U.S. is that we have something called capitalism. Capitalism works best when there is competition in the market.
Let Microsoft acquire Yahoo and may the best company win.
As for those that say the “internet is at stake”, the correct statement should be that “electronic communication will continue to evolve in ways we have never dreamed of… way into the future.”

Posted By Bob Bradshaw Davidsonville Maryland : February 3, 2008 11:59 pm

It’s kind of laughable that the Goo would get all up in arms over fairness what with their stranglehold on search, page rank, and all the other things they whimsically manipulate day in and day out. I’m no fan of big Microsoft ambitions but I’m sick to death of what Google dictates. Maybe this starts to level the field somewhat.

Posted By Onequartlow.com, Pendleton, Oregon : February 3, 2008 11:42 pm

I for one hope the purchase goes through for Microsoft. Sure, it’s fun to hate Microsoft because they’re the big kahuna. But I tell ya, as a consumer, I’d love to see the innovation that Google would HAVE to come up with in order to keep us impressed. The brains at Google can do it. No need to fight growth. No need to fight innovation. Bring it on. I’m excited to witness it.

Dave
http://www.BornEntrepreneur.com

Posted By Dave, Austin TX : February 3, 2008 11:22 pm

While I agree regarding Google’s comments regarding Microsoft’s motives over possible buyout of Yahoo, it should also be clear that MSN leadership led by Steve Ballmer is not really capable of handling post merger scenario. Coupled with cross executive tensions, it is like to result in doomsday for MSN and Yahoo. Investors would realise within weeks resulting in plummeting of share prices of both.

Posted By Bhagwat Goel,New Delhi,India : February 3, 2008 11:04 pm

down with google

Posted By Anonymous : February 3, 2008 10:57 pm

Just wondering why Google is stomping their foot and pouting? If the story out was Google’s dominance over Microsoft would they be crying foul? Most certainly not. Grow up Google. This is how the big boys play. Get over it or get out of the game.

Posted By Julie Y, Colorado Springs, CO : February 3, 2008 10:50 pm

Are you kidding me?
Google has like 60% marketshare and many anticompetitive practices of their own. It cracks me up that they are crying foul.
Do no evil, what a joke?
Have you seen how much money they are sucking out of local economies by taking advertising dollars that used to belong to small local media companies. That money used to go to local economies and employ people and now it is going to a gourmet cafeteria at the Google headquarters.

Posted By George, Indianapolis, IN : February 3, 2008 10:43 pm

Hasn’t Google already monopolized the internet with a 75%+ marketshare in both search and advertising?

-Ken
Some Life Blog

Posted By Ken, Thousand Oaks, CA : February 3, 2008 10:36 pm

I don’t think Microsoft is trying to monopolize the Internet but making it’s best effort to have grip on Internet. Well, it’s obvious pursuit in any business.

It doesn’t really matter what Google guys can say or talk in blogs or wherever, but what really matters to me is Bill Gates efforts to help the poor by taing such a great business venture with such an awesome bid.

Who else can do that possibly? I am proud of Microsoft’s bid.

Posted By John, Toronto, Canada : February 3, 2008 10:12 pm

Right. Google can buy DoubleClick, YouTube, etc., but as soon as MSFT poses a real threat with a possible YHOO acquisition, they run to the government crying. Give me a break. It wasn’t enough that GOOG got the wireless spectrum auction rules changed to suit it, now everyone needs to play by Google’s rules. Please.

Posted By Dan, Boston, MA : February 3, 2008 8:06 pm

My advice to Google: Don’t worry. MSFT can’t do links on MSN.com, and most of their “search the Web” links lead to page 404. They need the guy or gal at Yahoo that knows how to do a reliable link with HTML.

Posted By Larry, Mattawan MI : February 3, 2008 8:00 pm

It is ironic that Google, with is 58% share of the web market (in contrast to microsoft’s 9% and yahoo’s 22%) is speaking out against possible antitrust issues. Cleary, Google has a greed and ambition to take over the internet that must be controlled – the hypocrisy of their claims is astounding.

Posted By Andres, Philadelphia PA : February 3, 2008 7:50 pm

Isn’t it a little disingenuous of Google, the unquestioned 800 lb gorilla of the Internet, to be making noises about “inappropriate and illegal influence”? With Google’s obsession for secrecy, their caving in to the dictators of China, and their aggressive tactics designed to create a web that is anything but competitive, who’s kidding who? All you have to do for some people is hold up the boogeyman of Microsoft and scream “unfair competition,” and you can get people to believe any fool nonsense. I for one welcome a competitor that can take on the all powerful behemoth of Google. Of course they are worried about it; it could hurt their profits. Didn’t Google go after Microsoft with precisely the same tactics in order to “loosen up” the internet? What’s good for the goose is good for the gander.

Posted By Don – Albuquerque, NM USA : February 3, 2008 6:17 pm

Why is Google complaining? They monopolise or control most of web search on the internet, at east 80 per cent. They also own Google Earth, Maps, Blogger and Youtube and lots of other stuff and are collecting information on us everyday. Both are as bad as each other and someone or some organisation needs to take a stand against both their monopolies.

Posted By Robert Wooller Bradford England Europe : February 3, 2008 5:39 pm

Those comments look like a kneejerk reaction from a somewhat scared Google! This is going to be fun.

Posted By Keikei, Phila, PA : February 3, 2008 5:22 pm

goog has the guts to raise the “monoply” concerns while ignoring the fact that it is acquiring double click to further expand its share in the search market that it already monopolizes.

Posted By jj, SAN JOSE : February 3, 2008 5:05 pm

It amazing to see Google calling foul. When they were leading market and monopolizing the search market at that time there was no antitrust but suddenly when there are chancing of them losing market share, they started crying. Google has to learn they are not the superpowers and they also have to face competition which have not in the last 4 years.

Posted By Ram USA : February 3, 2008 5:01 pm

I, too, thought that this would be a good counterweight for Google’s ambitions as I was reading the article in the Inquirer about it.

Posted By Samuel Bronson, Upper Darby, PA : February 3, 2008 4:19 pm
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