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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I'd prefer them as separate companies. But MSN does have a rather lacking web presence, so if they could learn from Yahoo that could be a good thing. Probably wouldn't put a scratch on Google's search monopoly anynway.

Awwww Google, don't be scared. You might be mad and stomping your feet like a typical 5-year old but someone will hand you a tissue to wipe away your tears.

(C_Guy said @ #31)
Awwww Google, don't be scared. You might be mad and stomping your feet like a typical 5-year old but someone will hand you a tissue to wipe away your tears.

The behavior you describe sounds more like Ballmer than anyone I know at Google. What David Drummond is pointing out is the facts.

Wow - now that is a surprise.

Google complaining that Microsoft are expanding too much...hmmm...

Didn't they have a similar moan when IE7 inluded a search box that defaulted to live.com?

HI,

MS should stick to what it's supposed to be doing; Desktop and Server OS's.

Perhaps if that ~$44 billion was spent on fixing Windows Vista then fewer folks would have issues with it and we could get on with what we need to be doing.

Heck, MS could give a way a free Window XP Professional Licence and copy of a Virtual Machine package with every copy of Windows Vista and still save money and resolve a lot of the compatibility issues with Vista.

Why take on another "competency" when they can't get the ones they have right? :)

Kind Regards

Simon

(PsiMoon314 said @ #28)
HI,

MS should stick to what it's supposed to be doing; Desktop and Server OS's.

Perhaps if that ~$44 billion was spent on fixing Windows Vista then fewer folks would have issues with it and we could get on with what we need to be doing.

Heck, MS could give a way a free Window XP Professional Licence and copy of a Virtual Machine package with every copy of Windows Vista and still save money and resolve a lot of the compatibility issues with Vista.

Why take on another "competency" when they can't get the ones they have right? :)

Kind Regards

Simon

None of the Company would stop with its product...they keep on developing products (take car manufactures)...they create compelling products, compete with competitors...some fail, some succeeds...its all the business..

And MS will be investing on Online services which is a need now & for future...you cant tell them to stay away from it...

By the way in our home we have 2 laptops, 1 PC all loaded with Windows Vista home premium working very fine...

(PsiMoon314 said @ #28)
HI,

MS should stick to what it's supposed to be doing; Desktop and Server OS's.

Perhaps if that ~$44 billion was spent on fixing Windows Vista then fewer folks would have issues with it and we could get on with what we need to be doing.

Heck, MS could give a way a free Window XP Professional Licence and copy of a Virtual Machine package with every copy of Windows Vista and still save money and resolve a lot of the compatibility issues with Vista.

Why take on another "competency" when they can't get the ones they have right? :)

Kind Regards

Simon

Sorry this is out of this topic, but I don't see anything wrong with windows Vista. Got two desktops and one laptop running on Vista. Two desktops are running 24/7 flawlessly.

Anti-competitive is a stupid word. Why would a company want to be competitive anyway?

And basically my understanding is is Microsoft buy Yahoo then Microhoo! will be about the same size as google. To me it sounds like Google don't want competition. How can you claim having two equally used search providers is anti-competitive is nonsense.


Thats like saying in a race its better to have people who always come 1st, 2nd and 3rd rather than having two equally fast people - ye bull**it

Stop Google there itself...never allow it to monopoly the internet...(yea, MS does monopoly in windows), but theres always a competitor for OS like Apple, Linux etc...why shouldnt google have a good competitor like MS + yahoo combined?...Why is google scared?
Seems most of the high end google programmers are leaving once they got the stock option..

If Google is such an innovative companies, instead of whining about "anti-competitive" mergers & purchases they should develop applications that are better than what either Microsoft or Yahoo have to offer...oh, wait...they already have Gmail, Gtalk, etc - go check-out http://www.google.com/intl/en/options/ for their software product offerings.

So, why aren't these apps dominating the market? When most people hear or think of Google, they immediately associated Google with Web Searches and not Gmail (a fairly-good email service) or Gtalk (a fairly-good but dead-ended IM product) - but they have quite a few good-looking apps:

Orkut
Blogger
Picasa
SketchUp

Why aren't these products garnering the accolades of the IT industry? Aren't they equal to the products they compete with?

The IT industry, and computer users in general speak loudly in terms of user adoption of any given company's product. With that said, how many users are using Gtalk over WLM? On the other hand, what's the view-counts on YouTube content versus Microsoft SoapBox. or visits to MSN Spaces blogs versus Blogger content?

It's a known & published fact that Yahoo's revenue numbers have slipped significantly and that Google basically owns the Web Search Engine space; what does Google have to worry about in that space? Microsoft's offer for Yahoo won't make either the King of Search Engines and they have alot more to worry about with this proposed deal.

How do they build these applications like google talk or anything else? these application are based on microsoft platforms Maybe C++, aren't they!? what about gmail or orkut? it is probably running on either Linux or microsoft servers... how do you access these sites? probably with Microsoft IE using Microsoft windows OS! That's what I'm talking about my dear ...
Besides, you should Compare them! I mean number of programmers, planners , lawyers ... google do well but they can't stand against Big microsoft ...

I am not against google! I am just telling you google is not that big! we make it big maybe! For example, compare yahoo search with google search! They are not so different! but we may use google, this may help google so much!

(S3P€hR said @ #23.1)
How do they build these applications like google talk or anything else? these application are based on microsoft platforms Maybe C++, aren't they!? what about gmail or orkut? it is probably running on either Linux or microsoft servers... how do you access these sites? probably with Microsoft IE using Microsoft windows OS! That's what I'm talking about my dear ...
Besides, you should Compare them! I mean number of programmers, planners , lawyers ... google do well but they can't stand against Big microsoft ...

I am not against google! I am just telling you google is not that big! we make it big maybe! For example, compare yahoo search with google search! They are not so different! but we may use google, this may help google so much!

C++ isn't a MS tech... but they DO have to be build on W32 or MFC in the end to work on windows.. so if the app runs on windows in the end its a MS tech.. kinda like OSX carbon/coco/all that stuff all is Apple tech... that you have to build on if you want to use it on that os... even if you build on java... java still is just a wrapper for those techs in the end if you use any UI elements or anything like that.... even if you access the net with FireFox you still use W32 a MS platform in the end.... if its on windows...

Don't make Google Big please! google has the biggest search engine, right ! but they don't have their own Web technology! yahoo don't have technology either! But Microsoft have it! so Microsoft will finally win the fight against google with yahoo or without yahoo! may be this Acquisition make it faster! That's why google afraid!

There's some really big differences between Google and Microsoft.

For starters, Google doesn't try to force anyone to use their products. They make quality products and put it out there for anyone to use for free, and people choose to use them despite default settings in their operating system or elsewhere. Microsoft, on the other hand, tries to force everything they do down your throat and go out of their way to make it complicated or difficult for you to change that.

Do people go to Google.com because its the default search engine in their factory-installed copy of MSIE that automatically assumes dominance on your new PC? No. They go to Google.com because Google's search engine is one of the best on the internet. Same with Gmail, GoogleMaps, Firefox, and most of their other services and products.

Bash Google as a monopoly all you want, but they do little if anything to truly mark themselves as a vicious monopolistic corporation. They're simply popular and build upon their popularity. Microsoft is the corporation guilty of underhanded schemes and questionable tactics to get their market shares and they do whatever they can to *make* people use their products... and that's exactly why they're the (relatively speaking) bad guys.

just curious, what is the default search engine for firefox???

i havent used it but i assume it is google???

if you havea product why woudl you promote someone elses competing product in one of your products, it woudl be like Apple installing windows as default, coke sticking advertising for pepsi on it's cans... business is business....

(whocares78 said @ #21.1)
just curious, what is the default search engine for firefox???

Someone missed the "factory-installed" bit of the post he was replying to. There's a huge difference between a default setting in an optional program and a hardcoded application that refuses to let you change how or what it uses.

Google doesn't incorporate itself unwillingly into your operating system (though a few of its shady so-called "partners" try to shove their products in here and there despite Google's policies). Google doesn't bug out if you try to use something else or make it virtually impossible to do so. Google doesn't force you to use Firefox to run its applications. etc.

I think Microsoft needs Yahoo to put any type of significant dent in Google's monopoly. Really, everyone thinks that Microsoft is some evil monopoly, yet Google is the internet monopoly if there is one. Microsoft + Yahoo still wouldn't overtake Google, but it would help to make things more competitive.

IF google really is the shiznit, what are they afraid of? If anyone is being anti-competitive it's google.
Would Mike Tyson have complained because the #3 contender's sponsor wanted to buy the #2 contender?
Would the #1 team in any sport complain when the #3 team buys players from the #2 team?
Get over yourselves Google. If you've got a good product, it'll survive. If you have to rely on lawyers to protect your position, you're pathetic. It seems you're just another whiny group of SFBay liberals that are spoiled to the core. Competition comes at you and you want someone to step in and protect you. You're addicted to power and recognition aren't you? What do they say about power corrupts?

What's stopping Google from bidding? Right now the company is basically for sale... if you want it you have to cough up the money for it...

A lot actually. For one, it's a hell of a sum to beat. Secondly, being the market leader, they have more of a chance to have anti-competitive problems than Microsoft. If they do bid, it won't be just with cash (kinda like they did with DoubleClick).

So basically Google seems afraid that the monopoly that they hold in the search engine market might be impacted by another monopolistic company? Boo frickin hoo. Microsoft does *anything* and they're considered anti-competitive. Of course they are... they're out to make profits.

Besides that, Google doesn't have anything to worry about...

whats the big deal, MS is already into all that stuff anyway, if anythign it would make MS almost as big as google, i think thats what they dont like, they havent had any real compettition for so long (yahoo or MS arent really any competition at the moment). now it looks like they may have some competition so they get all scared

They don't need too, Yahoo! is considering joining Google as an alternative to been bought out by MS and if it does happen I can only think of one thing to say to MS, OWNED!

It makes me laugh that Google is getting scared and is saying anything they can to make this look as bad as possible.

I do agree that this is a bit silly, Microsoft's market isn't on the Internet. When they do move onto the internet, it isn't really all that great (Live search for example). They just want to compete with Google.

However, I kind of feel bad that Yahoo is failing... they used to be a bit back in the day, now barely anyone bothers with Yahoo. It would be interesting though to see what another company would do with Yahoo's resources.

umm ever heard of live messenger, it is fairly dominant as it stands, live search is pretty dodgy mergin with yahoo, may actually give us another decent search engine, MS has a fairly big internet presence as it stands.. and MS definately has a market on the internet

Hotmail too also has the largest user database if I recall. Infact I think it's one area Google pales in comparrison to Yahoo and MS although they have only been in the field for a relatively short amount of time too.

Infact outside of Search and Advertising I'd say most of Googles services trail behind competitors. Youtube is the one exception but that was a buyout too. Areas like GMail and Google Talk don't have the same audience as other company's products. Google Maps is good but it's still a bit of a niche app at the moment although it should become increasingly more useful as phones ect start to utilise it more. ATM I'd say it's more often used as a "cool thing to try" more than anything but.

straight from Google. When Neowin doesn't post a link to another article as a source, it means we are getting it from the original source.

Well, someone has got to challenge Google's monopoly on search! Live search totally sucks right now... but I don't know how MS plans to improve that.

Actually, I think Live Search is excellent. A much better UI and much better features than Google. Even many of the results are accurate. It's just many users are used to Google and judge Live Search before they even give it a chance.

It also seems to be 'common knowledge' that Google has the most accurate search results, when this is definately not true, in all cases.

(cJr. said @ #5.1)
Actually, I think Live Search is excellent. A much better UI and much better features than Google. Even many of the results are accurate. It's just many users are used to Google and judge Live Search before they even give it a chance.

It also seems to be 'common knowledge' that Google has the most accurate search results, when this is definately not true, in all cases.

no just in MOST cases, have you ever compared the results form both search engines when searching for the same things, if not come back and tell us what you find, from my expierience google alwasy gives better results, adn yes i have tried live search, as far as the desktop search, Microsoft is defiantely a lot less reliabale in terms of search results and being able to rely on it being up to date.

Quite frankly I think this is good for Google.. and they know it. They will get some of the disgruntled Yahoo! employees, and users too.

They are just putting on this stance to slow the process down with regulators and make them -Google - look like angels

It's all PR.

How many of them are the size of Yahoo?

Isn't Yahoo the second biggest player in email after Hotmail? And I'm sure that Yahoo! Portal thing is popular as well (MS have a tonne of portals in a tonne of countries).

(Pc_Madness said @ #2.1)
How many of them are the size of Yahoo?

Isn't Yahoo the second biggest player in email after Hotmail? And I'm sure that Yahoo! Portal thing is popular as well (MS have a tonne of portals in a tonne of countries).

search engine wise i think the stats are

Google
Msn
Yahoo


yahoo is definitely tons bigger then anything else googles aquired.

(Berserk87 said @ #2.2)

search engine wise i think the stats are

Google
Msn
Yahoo


yahoo is definitely tons bigger then anything else googles aquired.


nope, yahoo has more search engine market share than microsoft.

(Axon said @ #2.6)
MSN only accounts for 12.8% of market share (earning them 3rd place) with Yahoo in 2nd at 28.8& leaving Google in first with 43.7%.

http://searchenginewatch.com/showPage.html?page=2156431

these are the stats you all need to read before you say it's going to make it less competitive, if you add both MS and Yahoo, you actually get some competititon for google which it has not had since it started... ever wonder why people dont say 'search for it on the internet', they say 'google it' beasue google has become the default search for pretty much everyone

What a bunch of babies. Business is business. Microsoft is doing what Microsoft does - extend monopolies. If Google doesn't like it, they should put up their own offer for Yahoo or shut-up.

I must say, I'm surprised at the amount of Google bashing that's going on here. Let us not forget who funds the FireFox web browser. Less cash for Google = Less cash for FireFox. Google does have a larger online presence than Microsoft, but not to the point where I would call it a monopoly.

For many years now I have been a Microsoft supporter. I still am, partially. I staunchly defend Windows Vista while it seems very popular to bash it. I think it's a great operating system. But for the online front, I support Google. Microsoft already dominates the OS and office suite industry, and they are making progress in dominating the gaming industry. They don't need total control over everything tech-related.

(Chugworth said @ #1.2)
I must say, I'm surprised at the amount of Google bashing that's going on here. Let us not forget who funds the FireFox web browser. Less cash for Google = Less cash for FireFox. Google does have a larger online presence than Microsoft, but not to the point where I would call it a monopoly.

For many years now I have been a Microsoft supporter. I still am, partially. I staunchly defend Windows Vista while it seems very popular to bash it. I think it's a great operating system. But for the online front, I support Google. Microsoft already dominates the OS and office suite industry, and they are making progress in dominating the gaming industry. They don't need total control over everything tech-related.

Screw Firefox (I'm writing this on it lol, last time I use it.) Such a memory hog. For some reason it's using 174,032 KB. of RAM.. thats as much as FarCry uses.

(Swordnyx said @ #1.3)
Screw Firefox (I'm writing this on it lol, last time I use it.) Such a memory hog. For some reason it's using 174,032 KB. of RAM.. thats as much as FarCry uses.

I just loaded them both up on google.com, came to neowin.net then visited this page and Firefox is reading around 40,000 (with many extensions) while iexplorer is over 55,000 (nothing extra as I rarely use it). Firefox for me rarely goes above 100,000, and usually sits around 80,000.

But to be perfectly honest unless you need that RAM for some other use at the time its perfectly acceptable for it to be making use of RAM. If you have several tabs open all with several pages of history each then 174,000 is acceptable. Check out other OSs to see how they behave when you do the same. If it was using 1,000,000 I'd be a little more concerned.

(stgeorge said @ #1)
What a bunch of babies. Business is business. Microsoft is doing what Microsoft does - extend monopolies. If Google doesn't like it, they should put up their own offer for Yahoo or shut-up.

It'd be great if Google's offer was for $1 and Yahoo took it.

But I would prefer if both of them left Yahoo alone. At least it wasn't Google that started this, now what choice do they have?