Microsoft’s announcement on Friday of a hostile takeover bid for Yahoo stirred up Silicon Valley over the weekend, as Google loudly voiced antitrust concerns, Yahoo’s board emphasized that it will take its time evaluating the bid, and analysts questioned whether the offer price of $31 would be raised.
In a Google Blog post Sunday, David Drummond, Google’s chief legal officer, called on regulators to examine “thoroughly” the questions raised by Microsoft’s offer, while reminding everyone that Google stands for “openness and innovation.”
Drummond reminded readers about Microsoft’s history of “inappropriate and illegal influence” over the development of the PC. “Could the acquisition of Yahoo allow Microsoft — despite its legacy of serious legal and regulatory offenses — to extend unfair practices from browsers and operating systems to the Internet?” he wrote. “Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors’ e-mail, IM and Web-based services?”
In a telephone interview, Greg Sterling, principal analyst with Sterling Market Research, said Google’s “not-so-behind-the-scenes” comments highlight the “bitter contest” between the search giant and the software giant. “It’s high drama,” he said.
Google’s antitrust argument may not win the day — it will be hard for the Federal Trade Commission to deny Microsoft, having just approved Google’s acquisition of DoubleClick — but Google is well served by delaying the merger for as long as possible, Sterling said. “They may be able to speed ahead,” he added, as the deal slowly moves through the approval process.
Brad Smith, Microsoft’s top lawyer, returned fire Sunday. The “combination,” he said, labeling it neither a merger nor an acquisition, would result in a “more competitive marketplace” for search and online advertising. Noting that Google controls 65 percent of searches in the U.S., while Yahoo and Microsoft combined…