Menu
Google, Microsoft trade barbs over Yahoo bid

Google, Microsoft trade barbs over Yahoo bid

Google said that Microsoft's offer to buy Yahoo raises "troubling questions."

Google has made its first official comments on Microsoft's proposed acquisition of Yahoo saying that the deal raises "troubling questions" and that the underlying principles of the Internet stand to be tested by the proposed deal.

The statement refers several times to Microsoft's past regulatory transgressions and indicates that Google could be preparing to fight the deal -- if it is accepted by Yahoo -- by pushing regulators to disallow it.

"Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC?," asked David Drummond, senior vice president of corporate development and chief legal officer at Google in a statement posted on the corporate blog on Sunday.

Drummond also asks if an acquisition could allow Microsoft to "extend unfair practices from browsers and operating systems to the Internet?" and to " take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors' email, IM, and web-based services?"

A report late Sunday in the online edition of The Wall Street Journal said Google CEO Eric Schmidt called Yahoo CEO Jerry Yang on Friday to offer help to the rival in thwarting the bid. The newspaper, which quoted people familiar with the matter, didn't provide details of the telephone call.

Google has something to fear from a combined Microsoft and Yahoo. The proposed deal, which was announced on Friday and has Microsoft offering US$44.6 billion for Yahoo, would combine the number two and three search engines. The two companies are also leaders in the areas of Web mail and instant messaging so a merger would provide stronger competition for Google in those areas.

But Google has a massive lead in search and the deal wouldn't necessarily lead to an improvement in search results, so Microsoft and Yahoo would still face a challenge to surpass Google's current dominance in this part of the market.

The Google statement got a quick response from Microsoft, which said a combination of the two companies would benefit Internet users by establishing a stronger number two competitor to Google.

"The alternative scenarios only lead to less competition on the Internet," said Microsoft's top-lawyer, General Counsel Brad Smith, in a statement.

"Microsoft is committed to openness, innovation, and the protection of privacy on the Internet. We believe that the combination of Microsoft and Yahoo! will advance these goals," Smith said.

A merged company would still only account for about 30 percent of the search queries run in the US and about 10 percent in Europe, he said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Meet the winners of the 2020 Reseller News Innovation Awards

Meet the winners of the 2020 Reseller News Innovation Awards

Reseller News honoured the standout players of the New Zealand channel in front of more than 500 technology leaders in Auckland on 21 October, recognising the achievements of top partners, start-ups, vendors, distributors and individuals.

Meet the winners of the 2020 Reseller News Innovation Awards
Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Show Comments