Microsoft-Yahoo deal poses antitrust issues: Google
390189
Google Inc  fired back on  Sunday at Microsoft Corp's  $44.6 billion bid to  acquire Yahoo Inc , accusing Microsoft of seeking to  extend its computer software monopoly deeper into the Internet  realm.
181908
(InfoWorld) - Google's claims thatÂ Microsoft's built-in Vista desktop indexing and search tool violates its antitrust agreementÂ could be difficult to prove even if the software does slow down the performance of Google's competitive Google Desktop offering. As long as a user can run alternative software to Microsoft's Instant Search software, it's unlikely that U.S. federal antitrust officials would consider coming down on the software giant, analysts and users said. Google's claims are far different than the ones posed by Netscape during the browser wars that led to the Department of Justice's antitrust suit in the 1990s, said Rob Helm, research director at Directions on Microsoft. "Microsoft beat Netscape in part by leveraging its relationship with PC manufacturers," he said. "This is a lot subtler." Google seems to be alleging that "if two pieces of software don't play together, then it must be an anticompetitive tactic of Microsoft's," Helm said. "I don't recall any past antitrust cases asserting something so broad," he said. The presence of Microsoft's Vista desktop search could be slowing down Google's product merely as an accident of product design, not because of any malicious intent by Microsoft, Helm said. "Even if Microsoft's software was perfectly written, the way Google interacts with it might be bad, and either company might be at fault," he said. "They could have both done the right things in different ways that might conflict with each other." According to a report in The Wall Street Journal Monday, Google sent a white paper to U.S. federal and state antitrust officials in April to try to convince them that Vista makes it difficult for consumers to use rival desktop search software. In its white paper, Google claims that Vista's search boxes and bars -- available in several places in the OS, including the Start menu and in the Windows Explorer file manager -- work only with Microsoft's search and indexing tool. The company also said it is nearly impossible to turn off Vista's indexing, which means a competitor must add a second indexer that slows down a PC. Google spokesman Ricardo Reyes confirmed the company's charge against Microsoft Monday. Microsoft is disputing Google's charges and said that it has worked closely with federal officials to ensure its Vista OS, released to consumers in January, fosters rather than inhibits competition in the area of desktop search. Users can disable Vista's desktop search service, but the company has not made it simple for them to do so, acknowledged Jack Evans, a Microsoft spokesman. He said this is because the company designed Vista's desktop search specifically "to not affect performance and back off any other programs running" -- including any third-party desktop search software -- in a way that should resolve any claims of anticompetitive behavior, Evans said. Andrew Brust, chief, new technology of consulting firm Twentysix New York, said he used Google's desktop search when it first came out but switched to Microsoft's product when it became available for Windows XP because he preferred it. "Microsoft chose to integrate into Windows, whereas Google decided to be browser-based," he said. "Plus, at least back then, Google installed its own local Web server as part of the product and I really didn't like all that baggage. Microsoft's was just more useful." Brust, who has used Vista in beta form, said integrating desktop search into Vista is "common sense" and suggested that Google's complaints might be sour grapes over Microsoft's own antitrust charges against the search vendor when it unveiled plans toÂ purchase online advertising and marketing powerhouse DoubleClick. Samir Bhavnani, research director for analyst firm Current Analysis West, said that Microsoft's integration of desktop search into Vista was a response to Apple's inclusion of desktop search in their Mac OS, not a move against Google. He said it wouldn't be fair for Google to accuse Microsoft of being anticompetitive without leveling the same charge at Apple. However, Helm contradicted this reasoning and said that Apple was not found in a U.S. court to have a monopoly on PC OSes, while Microsoft was in the DoJ case. "I don't have the impression that Google is worried about Apple," he said.
470292
Microsoft shareholders have grown increasingly concerned that a deal with Yahoo will cut into earnings.
172636
SAN FRANCISCO/NEW YORK  - Yahoo Inc  would  consider a business alliance with Google Inc  as one  way to rebuff a $44.6 billion takeover proposal by Microsoft, a  source familiar with Yahoo's strategy said on Sunday.
650058
Microsoft Corp.  may need  to cut prices or pursue a deal similar to Yahoo Inc.&#039;s   and online auctioneer eBay Inc.&#039;s  partnership to gain  ground in the lucrative Internet advertising market, analysts  said on Thursday.
65777
If Yahoo rejects the Microsoft bid and finagles a deal with Google, it could open itself up to a slew of shareholder lawsuits, experts say.
695236
SAN FRANCISCO/NEW YORK  - Yahoo Inc would consider  a business alliance with Google Inc as one way to rebuff a  $44.6 billion takeover proposal by Microsoft, a source familiar  with Yahoo's strategy said on Sunday.
276587
Microsoft Corp  plans to invest  heavily in Web search to compete against Google Inc ,  even if it fails to acquire Yahoo Inc , the company's  chairman Bill Gates said on Monday.
763899
Yahoo Inc.  and Web auctioneer  eBay  on Thursday announced a partnership designed to  boost their position against Microsoft Corp.  and Web  search leader Google Inc. , underscoring recent  speculation the two companies could eventually merge.
99281
Google executives are urging trade regulators around the world to look closely at Microsoft's bid to buy Yahoo, a $44.6 billion proposal that they say threatens to quash competition, stifle Internet innovation and shrink consumer choice.
243310
Microsoft CEO Steve Ballmer rebuffed&#160;Google&#39;s accusations&#160;that an acquisition of Yahoo would be anticompetitive.
670411
Yahoo remained coy on Monday as Microsoft publicly touted the virtues of its 44.6-billion-dollar bid to take over the Internet firm and Google maneuvered behind the scenes to thwart it.
759601
(InfoWorld) - Google escalated its antitrust battle with Microsoft Monday by questioning its rival's promised changes to Windows Vista search and asking a federal judge to extend oversight to make sure Microsoft follows through. In a seven-page brief, Google is asking for permission to file with a federal court in Washington, Google staked out the same position it voiced last week. "Microsoft's hardwiring of its own desktop search product into Windows Vista violates the final judgment in this case," the brief read. Microsoft responded by saying there's nothing new to Google's latest maneuver. "We believe we went the extra mile to resolve these issues in a spirit of compromise," said company spokesman Jack Evans. "The government has clearly stated that it is satisfied with the changes we're making. Google has provided no new information that should suggest otherwise in their filing." Less than a week ago, Microsoft agreed to make modifications to Vista's handling of desktop search. On Monday, however, Google again said that the changes weren't sufficient. "The remedies won by the Department of Justice and state Attorneys General from Microsoft are a positive step, but consumers will likely need further measures to ensure meaningful choice," said David Drummond, Google's chief legal officer. "Ultimately, these issues raise the need for continued judicial oversight of Microsoft's practices to ensure that consumers' interests are best served." Among several objections listed in the brief, Google said Vista would continue to call on Instant Search when users run searches from locales like Windows Explorer and that users will still not be able to easily disable Microsoft's desktop search. And while the deal struck last week would have Microsoft allow users to select a default search tool in Vista, then use that tool for searches done from the operating system's Start menu, Google hinted that Microsoft may cut off its nose to spite its -- or its rival's -- face. "Google understands that Microsoft may intend to remove these [Search] menu entries from Vista and deprive users of these access points altogether rather than provide the user choice required under III.H.1(a) of the Final Judgment," Google charged. To better monitor Microsoft's promises, Google suggested to federal district court Judge Colleen Kollar-Kotelly, who oversees the 2002 antitrust decree, that she extend her oversight. Sections of the settlement, including the part that would conceivably pertain to search, are to expire Nov. 12 2007, but government regulators can unilaterally ask to extend that deadline by two years or even an additional three after that to November 2012. In any case, Google's brief may be moot; Kollar-Kotelly has a history of rejecting outsiders' efforts to join the case. In a November 2002 opinion, for instance, she wrote: "While there is no inherent flaw in giving third parties a voice in this process, as very often such third parties will be most immediately aware of Microsoft's conduct, non-parties should not be allowed direct access to the enforcement mechanisms." Chris Wolf, an attorney who chairs the Internet law practice of Proskauer Rose in Washington, said he sees no chance that the judge will start now. "There's no reason why she would change her practice of the past, especially with a brief filed by one who is so obviously a competitor of Microsoft and thus has an ax to grind. "It would be very different if one of the plaintiffs made these arguments," Wolf said. "But Google's certainly not bashful. It could have done this earlier and likely did, but it was rejected." "This would be unprecedented," added Microsoft's Evans. "This would be the first time that an operating system would require a third-party product for underlying functionality." Google filed the "friend of the court" brief a day before Kollar-Kotelly is to hear a status update. That hearing is scheduled to begin at 10:30 EDT Tuesday.
260539
Microsoft is trying to force Yahoo into a merger so that the two companies together will have a better chance of tackling Google.
507627
Microsoft Corp.'s $41 billion takeover bid appears to have backed Yahoo Inc. into a corner, leaving the struggling Internet pioneer with the unpleasant choice of selling to a detested rival or pursuing other agonizing alternatives likely to require the help of an even fiercer foe, Google Inc.
522686
Microsoft Corp.  said on  Monday it expects rival Google Inc.  to file a  complaint with a federal judge arguing that changes Microsoft  has agreed to make to its Windows Vista operating system fall  short of addressing concerns that its computer search function  puts Google and other potential competitors at a disadvantage.
565982
Microsoft Corp  said on Friday  it has offered to buy Yahoo Inc , the popular Web  portal, for $44.6 billion in cash and stock, seeking to join  forces against Google Inc  in what would be the biggest  Internet deal since the Time Warner-AOL merger.