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Google can't buy Yahoo, says Microsoft
All the rumors and speculation around Yahoo's future have revolved recently about Microsoft potentially buying them out. It was further rumored that Google may step in as well, or at least strike some form of deal with the ailing search company. While to many of us that seems plausible, to Microsoft that is the farthest thing from reality.
As Microsoft sees it, Google legally can't buy Yahoo because their 75% market share in online paid search makes them a near monopoly and antitrust laws would have to prevent it. A Microsoft representative even went so far as to say that their “super dominant” position makes Google the one company in the world that cannot make an offer on Yahoo.
Interestingly, this is the same company that denied they were a monopoly when Internet Explorer still enjoyed a healthy 90+ percent market share, and Windows held an even larger share of the pie. But that put aside, the Redmond-based company might have a good point as Google is the 900 pound gorilla of search today and the FTC might frown upon them trying to swallow up Yahoo.
As Microsoft sees it, Google legally can't buy Yahoo because their 75% market share in online paid search makes them a near monopoly and antitrust laws would have to prevent it. A Microsoft representative even went so far as to say that their “super dominant” position makes Google the one company in the world that cannot make an offer on Yahoo.
Interestingly, this is the same company that denied they were a monopoly when Internet Explorer still enjoyed a healthy 90+ percent market share, and Windows held an even larger share of the pie. But that put aside, the Redmond-based company might have a good point as Google is the 900 pound gorilla of search today and the FTC might frown upon them trying to swallow up Yahoo.
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User Comments (7)
Post a comment| thejedislayer on February 5, 2008 8:19 PM | I love how things are getting heated up!
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| eddie_42 on February 6, 2008 12:20 AM | alltheweb.com
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| phantasm66 on February 6, 2008 12:56 AM | As Microsoft sees it, Google legally can't buy Yahoo because their 75% market share in online paid search makes them a near monopoly and antitrust laws would have to prevent it. Surely the irony of them quoting antitrust laws is not lost on you all?If the shoe was on the other foot, and Microsoft had 75% market share in online paid search, they'd said this was innovation and enterprise.
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| nazartp on February 6, 2008 9:17 AM | Originally posted by phantasm66: As Microsoft sees it, Google legally can't buy Yahoo because their 75% market share in online paid search makes them a near monopoly and antitrust laws would have to prevent it. Surely the irony of them quoting antitrust laws is not lost on you all? If the shoe was on the other foot, and Microsoft had 75% market share in online paid search, they'd said this was innovation and enterprise. The situation is quite different: Microsoft was not buying anything. They were being prosecuted primarily for extending their monopoly power in the OS business into web-browser business. Pretty much the same notion under which Canada is suing Apple for literally bundling iTunes and iPod. Or bundling QuickTime and iTunes. On the other hand, MS is absolutely right - even though Google market position is just innovation and enterprise, but under the US laws (Sherman Act) they will not be allowed to buy Yahoo.
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| icye on February 6, 2008 3:36 PM | Yahoo! should join with Apple and screw Microsoft in the end :P
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| Cold Canuck on February 7, 2008 5:04 PM | Originally posted by icye: Yahoo! should join with Apple and screw Microsoft in the end :P Which end? :-]While I fully agree with the laws and FTC rules being fairly and impartially being applied, Microsoft should be the last to speak out about Goggle's corporate practices. [Edited by Cold Canuck on 2008-02-07 17:08:08]
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| xfallenangelx on February 9, 2008 5:04 AM | Originally posted by Cold Canuck: While I fully agree with the laws and FTC rules being fairly and impartially being applied, Microsoft should be the last to speak out about Goggle's corporate practices. [Edited by Cold Canuck on 2008-02-07 17:08:08]
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