The proposed deal/buyout/takeover between Yahoo! and Microsoft has divided opinion amongst industry analysts, Yahoo! shareholders and anyone else with an interest in the proposal. One company definitely opposed to any tie up however is Google, as should rightly be expected.

We already knew Google wasn’t happy with the proposed deal between Yahoo! and Microsoft, which after stalling for a long while, seems to be back on the table. Indeed, last week saw so called informal merger talks happening between the two boards, with the latest reports suggesting a new deal is on the table.

Now, according to Reuters, Google Chief Executive Eric Schmidt has publicly outlined his opposition to the tie up. His reason? He’d be worried about the free flow of information on the Internet if it were to happen. He said:

“We would be concerned by any kind of acquisition of Yahoo by Microsoft. We would hope that anything they did would be consistent with the openness of the Internet, but I doubt it would be.”

“We are concerned that there are things Microsoft could do that would be bad for the Internet.”

While he refused to expressly condemn past examples of Microsoft’s underhanded tactics, he did point to “the things that it has done that have been so difficult for everyone.”

This dig probably refers to the countless antitrust battles in the US and Europe. Just last year, a European court upheld a 2004 decision claiming Microsoft had abused the monopoly stranglehold its Windows operating system had to damage competitors, and the 497 million Euros ($695 million) fine which went with it.

It’s not big news that Google are against the Microsoft Yahoo! deal, but for the CEO to come out and say so in quite so plain English is a bit of a surprise.

As well as being worried about the potential for any such deal to harm the Internet, it’s clear that Google are worried about the effects it could have on its business. Microhoo or whatever they may end up being called, would become by far the biggest competitor to Google’s stranglehold on Web search were a deal to be reached.

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Entry was posted on Monday, March 17th, 2008 at 12:02 pm under Google, Internet, Opinion, Yahoo!.  Print This Post

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