Blog Post

Google Responds to MicroHOO

Google has kept mum on the much talked about Microsoft-Yahoo deal, but today the company broke its silence and posted its official statement on its blog. The statement is credited to David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer…

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.

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.

Does anyone else see this as Google playing tit-for-tat? After all Microsoft created some problems and complained loudly when Google decided to when it acquired DoubleClick. Will Google now start beating the anti-trust drums?

35 Responses to “Google Responds to MicroHOO”

  1. At last, the unthinkable has happened. The sky has fallen down and the world is ending! Yahoo is being acquired by the 500Ib Redmond beast. Who in a million years would ever think that this day will ever come? I remember many years ago about using an excellent service called It was the best e-mail service. But as soon as the 500Ib gorilla acquired it, that service went down the toilet and became a joke. Then there was WebTV. Where is it? WebT what? Now, Yahoo? May God help us, because in 5 yrs it may be Google’s turn to go to bed with the beast. I prefer that the Beast acquire Google now so it can de-construct it and lay it to waste as quickly as possible. Please leave Yahoo alone!!! I don’t think by acquiring Yahoo, the beast can make any improvement in its competition with the Googledontbevilbutbevilanyway.

  2. Disappointing to see this from a person and organization that I hold in such high esteem.

    It is intellectually insulting to read his argument; David is right- there are anti- trust issues- but they all concern advertising aggregation. But as that is a hard argument to articulate, he regrettably shifts the debate to anti-trust for consumers (and talks abut IM? Really?) because that is tangible to readers of the blog. Ludicrous argument.

  3. heads: msft+yhoo goes through, goog wins as users migrate over and new users continue to accumulate their way and feed their monetization engines. tails: msft+yhoo has issues, stretches out for months, goog wins as users migrate over. if i was goog, why wouldn’t i launch a few barbs here and there while yhoo contemplates the offer at hand.

  4. Pushing rods into wheels is such an old tactics – if it makes sense for business, if it is legal 100% then why not? And those who doesn’t like it – when was the last time you were talking to your legislator, huh?

  5. Watching Intently

    Microsoft must see a world of hurt coming their way if they’re trying to spend tens of billions of dollars to change from an OS/on-PC-applications company to a Web-based company, huh?

  6. That’s the way it goes. Jacking up the lawyer fees. Though MicroHOO will find itself not in as much trouble in the EU. Since Yahoo is only small potatoes in the EU.

    But the HR department of Google will have to work overtime today receiving all those resume’s of Yahoo’s developers. Can you imagine having to listen to Ballmer shouting DEVELOPERS DEVELOPERS.

  7. Chris B.

    Do you hear Google crying? I do :)

    The cultures of Microsoft and Yahoo may be different (as it would be between majority of companies of such size), but their business and talent pool complement each other. Also, don’t forget that they’ve had an ad exchange deal for a number of years and they decided to open up their IM pipes, etc. They have a relatively amicable relationship, so they are not as far from one another as one might think.

  8. Yuvamani

    Interesting move El G… Trying to block the deal based on the dominant (= monopoly => antitrust) share of IM + email ???

    I dont think the feds will bite though …

    Inspite of Googles very very apparent fear, I think google will come out on top of this one… When has a mega huge merger like this ever ever worked ? Two very very different cultures….

  9. Xavier Casanova

    Will anyone care what Google thinks of the deal? Even if they too legal action, their chances of blocking the deal would be close to zero. To me it’s just FUD.

  10. Must admit – those are some legitimate concerns expressed by Google. Just to give one small example: What will happen to Zimbra when Microsoft takes over Yahoo? Will MS allow an Outlook Exchange competitor to survive?

  11. Well, Google’s right with their response, with pointing out the problems Microsoft could make in future. There are anti-trust-problems, when Microsoft as one of the biggest internet companies out there wants to buy a company like Yahoo. If Google can do something to weaken the acquisition (through forcing Microhoo! to sell parts of the new company), they will – of course!
    Not much different to Microsoft’s complaint about the DoubleClick-acquisition. There are real anti-trust-problems, and Microsoft’s doing everything they can to weaken the deal.

    That’s not tit-for-tat, that’s business as usual – on a bigger scale, of course.

  12. Krishna Chodavarapu

    No. He had it right. Microsoft is crying foul at Google’s acquisition of DoubleClick. Although if we are pointing to typos, that last sentence is a bit of a train wreck: “Will Google is going to start…”

    But I don’t see it that way. I think Google would have played tit regardless of Microsoft playing tat.

  13. Martin Porcheron

    “After all Microsoft created some problems for Google when it acquired DoubleClick”

    Seems to be a typo – Microsoft acquired aQuantitative and Google has plans to acquire DoubleClick (depending on the outcome of the the EU competition commission).

    Do you mean “…Google created some problems for Microsoft…”?