The Mac Observer

Skip navigational links

Featured Article: TMO Contest - TMO Announces Macworld Expo Pass Winners

Google VP: MS Yahoo Bid Bad for Internet

by , 7:55 AM EST, February 4th, 2008

Microsoft's offer to buy Yahoo spells bad news for the Internet, according to Google's Senior Vice President of Corporate Development and Chief Legal Officer David Drummond. He thinks that if Microsoft completes the purchase it could undermine the "openness and innovation" the Internet is built on.

"Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC?" Mr. Drummond said. "While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies -- and then leverage its dominance into new, adjacent markets."

Microsoft presented Yahoo with a US$44.6 billion buy out offer on February 1 after the Internet portal and search company reported a substantial drop in earnings earlier in the week. Yahoo's Board of Directors and shareholders still need to agree to the offer, and the deal must also pass standard regulatory approval.

Microsoft claimed it could offer consumers better online services and choices by purchasing Yahoo. Microsoft Platforms & Services Division president Kevin Johnson commented "The industry will be well served by having more than one strong player, offering more value and real choice to advertisers, publishers and consumers."

Google, however, sees the possible deal as something more than a way for Microsoft to cash in on Internet-based advertising revenue. By combining forces with Yahoo, Mr. Drummond claims, Microsoft will control the largest percentage of instant messaging and Web-based email accounts. He also pointed out that both companies already run the two most heavily trafficked Internet portals.

With their forces combined, Mr. Drummond fears that Microsoft may use its monopoly status to unfairly limit consumer choices for Internet-based services like instant messaging and Web-based email.

"This is about more than simply a financial transaction, one company taking over another," he said. "It's about preserving the underlying principles of the Internet: openness and innovation."

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Tiger Posts: 1013 Joined: 17 Jun 2003
Subject: so now...

We'll end up with Goo-hoo.

Better than Micro-hoo

Comment on this Article


You cannot edit your comments.   You cannot delete your comments.
Log in | Register | Having Problems? Reset TMO Cookies & Try Again
Username:   Password:   Log me on automatically each visit   

You are not logged in, and this post will appear as "Guest." Log in with your username and password from the TMO forums. If you do not have a username, you can register here.
Please note that guests are limited to including a maximum of two URLs per post.


Post A Comment
  Subject


  Your Comments



Please enter the word exactly as you see it in the image above. Registered users aren't prompted for this. Having trouble reading the image get a new one.


Recent Headlines - Updated Saturday, November 29th, 2008

Sat., 9:00 PM
Podcast - Apple Weekly Report #135: Apple Lawsuits, Banned iPhone Ad, Green MacBook Ad
Fri., 12:45 PM
Podcast - Mac Geek Gab #178: Batch Permission Changes, Encrypting Follow-up, Re-Enabling AirPort, and GigE speeds
Thu., 1:30 PM
iPO Review - Scosche kickBACK iPhone case
7:00 AM
Happy Thanksgiving from TMO!
Wed., 6:00 PM
TMO Appearances - Nancy Gravley Joins MacJury Gift Guide
5:15 PM
TMO Visits The Bay, a Premium Apple Reseller in New Zealand
3:25 PM
iPO Oh the Games You'll Play - iPhone: The Wii of Handheld Gaming Devices?
2:15 PM
Sonnet Releases Simply Fast FireWire 800 to 400 Adapter
1:10 PM
Mac Gaming News - Disney Plans 1st Annual PotC Online Thanksgiving Event
12:05 PM
iPodObserver - UK Shuts Down iPhone 3G Ad
11:15 AM
TMO Appearances - Jeff Gamet on MacJury Gift Guide
10:30 AM
TMO Contest - TMO Announces Macworld Expo Pass Winners
9:50 AM
PhotoCopy 1.1 Adds iPhoto Event Support
9:15 AM
Acclivity Buys MYOB US
8:30 AM
Review - Bento 2 Holiday Pack
7:50 AM
Microsoft Offers Black Friday Office Discount
7:30 AM
iPO Quick Tip - iPhone: Google Street View
 

The Mac Observer Reader Specials

Apple Stock Quote

  • AAPL: $92.47. Change Today: +3.54.
  • (Prices delayed up to 20 minutes.)
  • Discuss in our Apple Finance Board

Hot Topics

Top Deals From DealsOnTheWeb