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.
"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan
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
Samsung Galaxy S8, Rumored Launch Date!
March 18, 2017, 6:45 AM
Lenovo MIIX 510 – Excellent 2-In-One Tablet with Unique Watchband Hinge
March 17, 2017, 7:50 AM
Gigabyte GA-Z170X-Gaming G1 – Intel Thunderbolt 3 Certified Motherboard
March 9, 2017, 6:25 AM
Xiaomi Mi Note 2 – This Chinese Phablet is the Best
February 24, 2017, 7:25 AM
Lenovo ThinkPad T460 - Ultra-Thin and Feather-light
March 3, 2017, 6:00 AM
Latest Blog Posts
Apple buys an automation app called Workflow. The deal was completed today and brings the app along with its developers.
Mar 23, 2017, 7:35 AM
Apple Announces new color for iPhones and iPads
Mar 22, 2017, 7:45 AM
Instagram: You Can Now Save Live Videos For Later
Mar 21, 2017, 7:49 AM
Samsung Galaxy S8 to Get New Color Scheme
Mar 20, 2017, 7:45 AM
What else to worry about?
Mar 17, 2017, 6:45 AM
Icon of the Day: Intel/ NVIDIA or Mobileye
Mar 16, 2017, 6:15 AM
JUST IN - Twitter Hijacked : High-Profile Account Accesses
Mar 15, 2017, 7:07 AM
Mar 14, 2017, 7:30 AM
News and Tips
Mar 13, 2017, 6:30 AM
iPhone 8 – May Not Get Curved Screen
Mar 11, 2017, 8:00 AM
California paves way to self-driving car tests without humans
Mar 11, 2017, 7:18 AM
Smart Machines V hackers
Mar 10, 2017, 7:00 AM
Uber Can Resume Autonomous Car Testing in California
Mar 9, 2017, 6:50 AM
Mar 8, 2017, 7:09 AM
Mar 7, 2017, 8:45 AM
World news 3-6
Mar 6, 2017, 5:40 AM
Mar 4, 2017, 7:40 AM
Mixed News of the Day
Mar 4, 2017, 6:32 AM
Jaguar Land Rover invests in ride-sharing
Mar 3, 2017, 7:00 AM
Mixed News of The World:
Mar 2, 2017, 7:02 AM
World New 3-1
Mar 1, 2017, 6:30 AM
Gaming News of The Day
Feb 28, 2017, 6:56 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information