Google calls Microsoft's bid for Yahoo 'hostile'

Google isn’t particularly happy about Microsoft’s recent proposition to acquire Yahoo. In fact, the company called the bid “hostile” and noted that the move would hurt the “openness of the Internet”. The search giant suggested that the move was anti-competitive and that it would only extend Microsoft’s monopoly, from the PC to the Internet: including services that both Internet giants dominate, such as instant messaging, web email, and Internet portals. Google emphasized that the interests of Internet users should come first, and that serious questions about the possible acquisition need to be asked.

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,” said David Drummond, Google's Senior Vice President, Corporate Development and Chief Legal Officer.

We take Internet openness, choice and innovation seriously. They are the core of our culture. We believe that the interests of Internet users come first -- and should come first -- as the merits of this proposed acquisition are examined and alternatives explored,” he concluded.

Update: Microsoft responded with the following statement,

"The combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The alternative scenarios only lead to less competition on the Internet. Today, Google is the dominant search engine and advertising company on the Web. Google has amassed about 75 percent of paid search revenues worldwide and its share continues to grow. According to published reports, Google currently has more than 65 percent search query share in the U.S. and more than 85 percent in Europe. Microsoft and Yahoo! on the other hand have roughly 30 percent combined in the U.S. and approximately 10 percent combined in Europe. 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, said Brad Smith, General Counsel, Microsoft.

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