On the Google blog, David Drummond, Google SVP corporate development and chief legal officer, issued the official response to the offer of Microsoft (Nasdaq:MSFT) to acquire Yahoo! (Nasdaq:YHOO).
Drummond used the opportunity to attempt to make Microsoft look "evil" in the Internet sense of the term. He said:
"So Microsoft's hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another. It's about preserving the underlying principles of the Internet: openness and innovation.
"Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies -- and then leverage its dominance into new, adjacent markets."
This is an odd response when Google (Nasdaq:GOOG) is increasingly being considered a company that does internet "evil," and uses it's size and market position to get its way as well.
Drummond goes on to say, "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? In addition, Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet. Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors' email, IM, and web-based services? Policymakers around the world need to ask these questions -- and consumers deserve satisfying answers."
This is all rhetoric being used to put doubt in the minds of people so Google can hopefully keep the action from being taken. They're trying to drum up an artificial outrage and fear and get people to start communicating about it across the Internet and the water cooler so it can create the perception there's a public outcry against the deal.
Another thing Google is attempting to do is divert attention away from the real issue: a company that could compete against them in search. That's why they focus on instant messaging and email accounts, and not their huge market dominance in search.
To me this deal is good from that point of view, as it would create a healthy alternative to Google, which has been throwing its weight around for years in search, and sometimes arrogantly remove companies from high search results, putting huge pressures on them.
A market alternative to Google is important for the search marketplace. There are obviously many other issues involved in the deal, but as it relates to Google, this is the most important one. Google's response shows they're concerned over the possibility, and will attempt to slow or shut down the deal if they are able to.
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