Google Assails Microsoft’s Bid for Yahoo

Google said Sunday that Microsoft’s proposed $44.6 billion takeover of Yahoo could pose a number of potential threats to competition that need to be examined by policymakers around the world.Google said in a blog post on its Web site that given Microsoft’s anti-competitive conduct in the past and its continued dominance in the technology industry, the proposed transaction could pose threats to “innovation and openness” on the Internet. But Google’s broadly worded concerns lacked detailed claims about the anticompetitive effects of the deal, and the company did not ask federal regulators to take any specific actions at this time.”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, Google senior vice president and chief legal officer, writing on the company’s blog. “While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies — and then leverage its dominance into new, adjacent markets.”’s Microsoft Fixation
Google just released a statement on Microsoft’s bid to acquire Yahoo. David Drummond, Google’s general counsel, wrote that the prospective deal “raises troubling questions.” He goes on to outline the points in what may turn into an antitrust challenge were the deal to be consummated.If the Google management team has a weakness, it is an obsession with Microsoft. That’s understandable perhaps. Eric Schmidt, Google’s chief executive worked at Sun and Novell, two companies that did battle with the Redmond, Wash., giant. And much of the rest of the top management are veterans of Netscape, which was essentially done in by Microsoft. weighs in against Microsoft
Google on Sunday raised a red flag over Microsoft’s unsolicited takeover offer for Yahoo, arguing that it could open the way for the software giant to extend its PC monopoly to the internet.

While Microsoft claimed that that deal could leave Google with inordinate power to control online advertising as it becomes the lifeblood of many internet companies, Google executives believe that Microsoft would be in a position to influence the evolution of the web itself.

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