Microsoft officially unhappy with Yahoo-Google deal

There have been a lot of stories since the Google-Yahoo deal was announced Thursday saying that Microsoft would be mounting a massive campaign to block the deal. But until now, I haven't seen Microsoft itself saying much about the antitrust implications of the actual deal.

After some asking, here's what I got back from Microsoft spokesman Jack Evans. It's not exactly a declaration of war, but clearly Microsoft is not giving the deal its blessing.

"Our position has been clear since April that any deal between these two companies will increase prices for advertisers and start to consolidate more than 90 percent of the search advertising market in Google's hands," Evans said. "Legal and industry experts agree that this would clearly make the market less competitive."

The real question now is which regulatory agencies, if any, take up Microsoft's position, as opposed to that of Google, which posted a blog Thursday saying the deal actually "preserves" competition.

"Quite simply, we think it is good for users, advertisers and publishers," Google Senior Vice President Omid Kordestani said in the blog. "By offering Google's industry-leading technology to Yahoo, the whole system becomes more efficient, and everyone benefits."

Yahoo and Google maintained that they didn't need regulatory OK to start the deal, but they have said they will wait three and a half months to give federal regulators time to "understand" the deal.

[ppgreat]

So Microsoft is now complaining about the Golden Rule?

[Penguinisto]

Which one - the biblical version, or "he who has the gold - rules"?

[someguy999]

bs... its not an anti-competitive monopoly scenario because neither company starts with the letter M?

[Penguinisto]

Suck it down, Steve. All this desperate casting about for new markets should be replaced with a back-to-basics approach with your core businesses (e.g. ditching that pig Vista and building a real OS), and a more intelligent approach towards exploring new markets (as in, stop chasing fads and actually do some research this time. It'll prevent you from repeating embarrassments like Zune).

[kitegeezer]

Advertising revenue?

Ad blockers work - this is the challenge for the online advertising industry.

I'm really tired of Mac vs MS vs linux

and Google vs yahoo vs ms

advertising supported internet is a slippery slope

I would gladly pay double for true cross platform software that had a common GUI

[labcondave]

HAHAHAHAHA, Microsoft is complaining about someone being anti-competitive? Seriously? I've heard about the pot calling the kettle black, but this one takes the cake...

[ossavir]

Google is always trying to look like everyone's best friend. Sure, they have a good thing going for them now, but how is leaving 90% of search in the hands of one company good in the long term? Oh, and I really like my Zune.

[The_Decider]

You should have stated you like the Zune in the first paragraph, it makes it easier to ignore your ill informed drivel.

[BIGELLOW]

It's amazing how people will consume Microsoft's words like the Gospel. If anyone actually read the details of the deal, they'd see that Yahoo! is only going to be placing AdSense ads next to search results for queries of their (Yahoo!'s) choosing... and it will ONLY be when the revenue generated by Google's AdSense ads would be more profitable to Yahoo! than if they were to feature ads from their own system.

This isn't changing Yahoo!'s search engine... isn't giving users a reason to stop visiting Yahoo!... the only effect this will have on Yahoo! is it will earn them more money. It will be completely within Yahoo!'s control. Furthermore, it is a non-exclusive deal which means Yahoo! has the right to make similar deals with any other company.

This doesn't leave "90% of search" in anyone's hands. It also doesn't mean that Yahoo! ceases to use its own ad system. If anything, it gives Yahoo! lots of information to determine what they may be doing wrong in their own ad system and gives them a benchmark to improve upon.

[JuggerNaut]

Funny how Microsoft (the pot) calling the kettle black! Microsoft can have 90% of the desktop computer market and that's okay, but if Google gets 90% of the internet search market, that's not okay?!

M$ = hypocrite!

[rtuinenburg]

Microsoft focus on what you do best. Create an OS that works with millions of different pieces of hardware. Let 3rd party vendors pretty up your OS. Just focus on making a stable OS that works with all hardware. Fill in the gaps by writing missing drivers. I would also focus on creating the most incredible virtual OS that syncs when you boot your desktop computer. I want to see office on my browser and I want it to be FREE. Make money on advertising. The amount of people using that would be incredible. Focus on these things and other good things will follow.