Google: Microsoft bid raises troubling questions

 

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By Stuart Turton

Posted on 4 Feb 2008 at 08:54

Google has blasted Microsoft's $44 billion bid for rival Yahoo, claiming the merger raises some "troubling questions."

"Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the internet that it did with the PC?," asks David Drummond, chief legal officer on Google's official blog.

"Between them, the two companies operate the two most heavily trafficked portals on the internet," he continues. "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."

However, Microsoft isn't taking the allegations lying down, swiftly turning talk of monopolies on its head.

"Google has amassed about 75% of paid search revenues worldwide and its share continues to grow," responds Brad Smith, Microsoft's general counsel.

"According to published reports, Google currently has more than 65% search query share in the US and more than 85% in Europe. Microsoft and Yahoo on the other hand have roughly 30% combined in the US and approximately 10% combined in Europe."

"The combination of Microsoft and Yahoo will create a more competitive marketplace by establishing a compelling number two competitor."

However, Microsoft may yet rue talking about the acquisition as if it were a done-deal, with reports suggesting Yahoo is considering alliance talks with Google.