Google Plans To Fight Microsoft-Yahoo "Monopoly"
February 4, 2008 10:37 AM
Google Senior Vice President, Corporate Development and Chief Legal Officer, pictured here speaking at Stanford, has implied that Google will fight tooth-and-nail against a Microsoft-Yahoo merger.
Google won't let Microsoft and Yahoo merge without a fight
Late last week
Microsoft's landmark $44.6 billion unsolicited bid for Yahoo
, which threatened to transform the online business landscape overnight. While the outcome at first seem uncertain,
opposition to the move quickly evaporated
with the resignation of former CEO and Chairman at-the-time, Terry Semel.
Semel had strongly criticized the merger as not in Yahoo's best interests. With Semel's resignation, and
landmark tough times for Yahoo
, a deal seems so likely many analysts are already calling it a sure thing.
Meanwhile, Google remained quiet during Microsoft's initial announcements. However, now the giant has
come out swinging again the merger
, which represents a serious threat to its online dominance.
David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer has posted a warning to Microsoft and Yahoo in his Google blog. In the blog he blasts the "hostile bid," stating, "
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."
He implies that Google, and a pre-merger Yahoo represent openess and freedom of the Internet. He implies that a Microsoft-Yahoo merger may mark a move towards staleness, proprietary systems, and most notably, monopolistic practices.
He adds the provocative question, "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 continues, "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? Policymakers around the world need to ask these questions -- and consumers deserve satisfying answers."
The blog, particularly coming from Google's top legal brass, seems to unmistakably imply that should Yahoo accept Microsoft's bid, Google would lobby for legal action to block the merger.
Google would likely argue that a Microsoft-Yahoo union would craft a monopoly or would open the door to anticompetitive practices. Its strongest evidence would be in the effects of the merger on total traffic and instant messaging use. Yahoo's properties
still ranked number one in terms of traffic
last year. A Microsoft-Yahoo team would certainly be the most visited set of properties. Further, a union between Microsoft and Yahoo would mean that Yahoo's titular messaging software and Microsoft's MSN Messenger would create a strong new leader in terms of instant messaging market share, according to Google.
Google would have a tougher time criticizing the merger in terms of advertising revenue and search engine traffic. Even with the merger, Google would currently still control approximately two-thirds of search engine traffic. Google would also maintain an advertising revenue lead, by most estimates.
While a Microsoft-Yahoo merger would represent a significant boost to Microsoft's power, it could also bring serious legal woes for both companies. With a hostile legal environment in the U.S. and abroad, and pressure from Google sure to be strongly applied, the real test may not be whether Yahoo accepts Microsoft's offer, but rather whether the accepted offer can survive international antitrust courts.
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
Yahoo Chairman Resigns, Microsoft Bid Offering Heats Up
February 1, 2008, 11:51 AM
Microsoft Offers to Buy Yahoo for $44.6 Billion
February 1, 2008, 10:00 AM
Yahoo Cuts 1,000 Jobs as Profits Fall 23%
January 30, 2008, 3:37 PM
Yahoo to Make Big Changes
January 16, 2008, 12:16 PM
Science & Environment
February 20, 2017, 6:37 AM
The USA’s newest weather satellite sends first photos.
January 24, 2017, 6:41 AM
Netflix took a decision to invest in original content
January 19, 2017, 7:00 AM
Amazon Airborne Fulfillment Center – Your Merchandise Drop-Shipped from the Clouds
December 29, 2016, 5:00 AM
Amazon is experimenting with a new kind of grocery stores, Amazon Go
December 8, 2016, 5:00 AM
Google has developed Deep Learning Algorithm to detect Diabetic Eye Disease
December 4, 2016, 5:00 AM
Most Popular Articles
Comparison: Tag Heuer Connected Modular VS Samsung Gear S3
February 20, 2017, 7:20 AM
Gigabit Are you looking for an Ultra Compact board?
February 22, 2017, 6:30 AM
Science & Environment
February 20, 2017, 6:37 AM
Dell XPS 13 Touch – Rose Gold Edition
February 23, 2017, 7:29 AM
ASUS ROG Maximus IX - Among the Best of the Best
February 21, 2017, 7:50 AM
Latest Blog Posts
Interesting News of the Day
Feb 25, 2017, 7:37 AM
AMD and More
Feb 24, 2017, 5:55 AM
Feb 23, 2017, 6:30 AM
Feb 21, 2017, 6:12 AM
Here is how startups are helping new parents in raising children
Feb 20, 2017, 6:45 AM
Around the World
Feb 18, 2017, 5:48 AM
News of Future
Feb 17, 2017, 6:30 AM
Amazon parachutes May Float Packages to Customers
Feb 16, 2017, 8:00 AM
Now you Can Watch Facebook on Your TV
Feb 15, 2017, 7:42 AM
Feb 14, 2017, 5:36 AM
Razer Blade Stealth – Little Kaby Lake Powerhouse
Feb 13, 2017, 7:50 AM
Android 7.0 Nougat 7.0 Update Bring Less Battery Life for Samsung Galaxy S7 & S7 Edge
Feb 12, 2017, 7:45 AM
Apple iPhone 8 – OLED Display & Wireless Charging
Feb 11, 2017, 8:09 AM
Feb 10, 2017, 6:15 AM
Feb 9, 2017, 6:00 AM
Eye catching news
Feb 8, 2017, 6:16 AM
Some World News
Feb 7, 2017, 6:15 AM
Feb 6, 2017, 10:11 AM
Feb 5, 2017, 7:27 AM
Notes and News
Feb 4, 2017, 5:53 AM
Feb 3, 2017, 5:30 AM
Feb 2, 2017, 7:00 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information