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.
"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein
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
Google plans ultra-fast wireless Internet for Research Triangle Park, N.C.
August 12, 2016, 6:30 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Most Popular Articles
Car Insurance - The Hidden Discriminatory Practise
October 18, 2016, 5:00 AM
Problems with Windows 10 – Update Now
October 15, 2016, 7:30 AM
Is Razer Blade Stealth Laptop For You?
October 16, 2016, 5:00 AM
Tesla Event Pushed to Wednesday
October 17, 2016, 5:00 AM
Smart Technology Mood Collar To Understand Your Dog’s Emotions
October 17, 2016, 5:00 AM
Latest Blog Posts
Mac Users, Try this if Your Mac is Infected?
Oct 23, 2016, 7:00 AM
Tips to Prevent Smartphones From Overheating:
Oct 22, 2016, 5:00 AM
Nasa Flies Drones at Nevada Airport
Oct 21, 2016, 8:21 AM
T-Mobile Data Problems
Oct 20, 2016, 10:17 AM
Annoying Apple Watch Problems and How to Fix Them
Oct 20, 2016, 5:00 AM
Your Mail May Soon Be Delivered By Robot
Oct 19, 2016, 9:34 AM
2018 Jeep Wrangler Prototype Sells At Junkyard
Oct 18, 2016, 5:00 AM
Samsung Shines with Gold Edition Tablet
Oct 17, 2016, 9:24 AM
Tesla Hints Mysterious Product Debut for October 17th
Oct 16, 2016, 10:14 AM
Samsung Galaxy Note 7 Phones on US flights
Oct 15, 2016, 5:00 AM
Comcast Fined $2.3 Million For Unconfirmed Services Charged To Customers
Oct 14, 2016, 5:00 AM
“American singer / songwriter “Bob Dylan is awarded 2016 Nobel Prize in Literature.
Oct 13, 2016, 10:33 AM
Battery Defect in Medical Device
Oct 12, 2016, 5:00 AM
IBM Bolsters Social Services Sector With Technology Grants
Oct 11, 2016, 5:00 AM
Scientists Sound Alarm on Climate but US Still Toys With Skepticism
Oct 10, 2016, 5:00 AM
IMEX America Trade Show
Oct 9, 2016, 10:00 AM
Phone Wars – Google VS Samsung Free Gifts on Purchase
Oct 6, 2016, 5:00 AM
Member of Parliament’s opposition car exploded in Tbilist capital of Georgia
Oct 5, 2016, 2:52 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information