Want to read Slashdot from your mobile device? Point it at m.slashdot.org and keep reading!

 



Forgot your password?
typodupeerror
×
Google Businesses The Internet Microsoft Yahoo!

Google And Microsoft Cross Swords Over Yahoo! 181

watzinaneihm writes "In a blog post Google has called Yahoo/Microsoft merger bad for the future of the internet. It is worried about the number of email and IM accounts this merged entity would control. Microsoft has countered with the argument that Google is actually the big bully in this instance, with most of the search market already tied up. The New York Times, in the meantime, has accused Google of a Microsoft fixation."
This discussion has been archived. No new comments can be posted.

Google And Microsoft Cross Swords Over Yahoo!

Comments Filter:
  • by techpawn ( 969834 ) on Monday February 04, 2008 @09:17AM (#22289814) Journal
    Not really sure it would be a fixation, maybe a kind of envy complex... When you see something and wonder why you don't have it too you develop a complex of envy to obtain it in one way or another... Right Sigmund?
  • by AdamReyher ( 862525 ) * <adamNO@SPAMpylonhosting.com> on Monday February 04, 2008 @09:17AM (#22289818) Homepage
    ...I'm actually going to have to side with Microsoft on this one. On rather, I'm going to side with no one. The idea that this would make Microsoft a bigger "monopoly" is unfounded because neither Microsoft nor Yahoo! has anywhere close to the highest marketshare of online searches or advertising. If we're so concerned about monopolies, competition in the field can only be a good thing. And at the rate it was going, unless something like this happened, no one would ever be able to stop Google.
  • Competition (Score:5, Insightful)

    by caution live frogs ( 1196367 ) on Monday February 04, 2008 @09:18AM (#22289830)
    I love how Microsoft's take on the merger is that it will create more competition. Why is it that any time a big company swallows a smaller one, we're told that having fewer players in the field will increase competition? Do people actually buy that line of bull? Someone get these guys a dictionary.
  • by Anonymous Coward on Monday February 04, 2008 @09:21AM (#22289848)
    Google has mind share. When you compare the search engines they're all pretty much equally garbage.
  • by Loibisch ( 964797 ) on Monday February 04, 2008 @09:26AM (#22289868)
    The day they're buying Ubuntu (and make a *nix based system part of their supported portfolio) would be the day that marks their end. Microsoft would be losing their most prized possession: their locked-in market.
  • by Anonymous Coward on Monday February 04, 2008 @09:26AM (#22289880)
    So Google voice a legitimate worry about Microsoft, a company convicted of abusing its monopoly status in one market to dominate other markets, buying a company that would give them a large portion of a market and they are the bad guys in this? Lets be honest what Google is saying is the first thing that came to the minds of everyone in IT who are not on the Microsoft payroll. We all know how Microsoft works and we can all hazard a guess at what their aims are in attempting to purchase Yahoo. It is doubtful the good of the internet and consumers are particularly high on their list of priorities.
  • Re:Competition (Score:4, Insightful)

    by h4rm0ny ( 722443 ) on Monday February 04, 2008 @09:30AM (#22289922) Journal

    In this instance, it may not be accurate to say that a big company is swallowing a smaller one. In this case, it might be more accurate to say they are rescuing it. Obviously Yahoo wasn't going to vanish, but in terms of search engine usage, it's nowhere close to Google. This might boost that area and introduce a real rival to Google. In which case it really will increase competition.
  • Fixation? (Score:4, Insightful)

    by whisper_jeff ( 680366 ) on Monday February 04, 2008 @09:37AM (#22289956)
    Google has a Microsoft fixation? Ok, I'm not willing to argue that, but I think the fixation railroad runs both ways. It's pretty obvious that Microsoft is more than a little pre-occupied with Google.
  • by jez9999 ( 618189 ) on Monday February 04, 2008 @09:39AM (#22289974) Homepage Journal
    Screw whether anyone has a monopoly in the search market; Google frankly deserve that monopoly (not exactly at Windows levels, though; only 75%) because they're THE BEST SEARCH ENGINE.

    Now, if Google bought out Yahoo instead, that would be likely to lead a a lot of positive things:
    - Some degree of maintenance of the Yahoo brand (MS would obliterate it)
    - Promotion of backend opensource architecture (MS would enforce MS products)
    - Less likelihood of services being charged for (MS would ruthlessly monetize all Yahoo services as much as possible)

    Frankly, I just hate Microsoft's whole money-making diversity-killing business ethos, and you have to realise that a MS buyout of Yahoo would be a pretty terrible thing. :-(
  • by AltGrendel ( 175092 ) <ag-slashdot.exit0@us> on Monday February 04, 2008 @09:47AM (#22290006) Homepage
    When it's Godzilla vs Godzilla, Tokyo gets trashed either way.
  • by AdamReyher ( 862525 ) * <adamNO@SPAMpylonhosting.com> on Monday February 04, 2008 @09:50AM (#22290044) Homepage

    Imagine in five years a world where Microsoft handles 60% of search traffic. The screws start turning from that point and there's no going back, just like Windows.
    How, exactly, is Microsoft having 60% of the search engine marketshare going to be a point of no return? Meanwhile, Google is sitting over there with the overwhelming majority, and 95% of all new PCs have Internet Explorer installed using MSN or Yahoo! as the default search engine, yet people still use Google. In order for Microsoft to get to that point of 60% marketshare, there's nothing they can buy out since it's as simple as typing another URL into the address bar. In order to get to that position, they will have had to have done something right (imagine that!) so that users are attracted to the services it provides.
  • by Anonymous Coward on Monday February 04, 2008 @09:52AM (#22290058)
    So if I understand you correctly, the way for a monopoly to be stopped is to have a competing monopoly buy its nearest competitor?

    Monopoly. As in one. This means there can only be one at a time. EVAR. Get some education, boi.
  • by syzler ( 748241 ) <david@s[ ]ek.net ['yzd' in gap]> on Monday February 04, 2008 @09:56AM (#22290084)
    The idea that this would make Microsoft a bigger "monopoly" is unfounded because neither Microsoft nor Yahoo! has anywhere close to the highest marketshare of online searches or advertising.

    While I agree that Google almost certainly has the lion's share of searches, the article specifically mentioned IM and e-mail. The majority of the non-techy people I know use either MSN, Yahoo!, or AIM for instant messaging and e-mail. The only people I know using Google Talk are my co-workers and one of my non-techy friends.

    Microsoft will probably not be very willing to work with Google to integrate Google Talk with either MSN IM or Yahoo IM. This will effectively split IM into two camps. In one camp there will be MSN IM and Yahoo! IM. In the other camp you will have Google Talk, AIM, and .Mac. Somewhere between the two camps, probably closer to the the Google/AIM/.Mac camp, will be Jabber services.

    Google is already working to integrate Google Talk with AIM: Time Warner's AOL and Google to Expand Strategic Alliance [google.com]. AIM and .Mac are already talking together: iChat [apple.com]. Since Jabber already works with Google Talk, I would not be surprised if the integration between Google Talk and AIM is done via a Jabber server to server interface which would allow Jabber servers to talk to the AIM network as well.

    From Google's blog:

    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?

    I too am afraid that Microsoft will attempt to quash any attempts to provide inter operability between different IM providers and will likely succeed since it will control the lion's share of IM accounts. Although Google has the lion's share of the search market, they at least provide or try to provide inter operability with other companies and do not try to lock competitors out of a particular business model.

  • by Jugalator ( 259273 ) on Monday February 04, 2008 @09:57AM (#22290086) Journal
    Microsoft is the guys here with the massive OEM deals to push their products onto the market, and using the economy gained from that to make "impossible" deals when they're thirsty of making a deal.

    What has Google made? The main things would be... A search engine that beats the pants off Microsoft, designed while they were still a startup company? It hasn't really evolved much since that (actually that's a bit to my dismay). Oh, and their ads. Thanks to their (mostly) text-based ads, they found a niche and sucessfully expanded upon it as (surprise, surprise!) people found those ads more likeable than the banner shit spewn forth by competing advertising programs.

    Anyway, trying to take a neutral stance on this, I think the thing here is that regardless if Microsoft and Yahoo merges, or Google and Yahoo does it, it will form a company with a very powerful web platform. So maybe neither should be allowed to? But if one should be, I think both should. Microsoft's abuse of their position is another matter than the power in the market this merge would form IMHO, and they should be caught for that stuff when that happens.
  • by wertigon ( 1204486 ) on Monday February 04, 2008 @09:59AM (#22290102)
    See? See? The bad guy (Microsoft) kidnaps the princess (Yahoo!) and The valiant knight (Google) comes to the rescue! And there was much epic battling. Then the princess stabbed both in the back. The end.
  • Re:Competition (Score:5, Insightful)

    by gEvil (beta) ( 945888 ) on Monday February 04, 2008 @10:00AM (#22290108)
    Obviously Yahoo wasn't going to vanish, but in terms of search engine usage, it's nowhere close to Google.

    Right, which is why a long time ago Yahoo began to diversify their offerings. They're not #1 in any field, but they are reasonably strong players in a dozen or so other fields.
  • by Chrisq ( 894406 ) on Monday February 04, 2008 @10:13AM (#22290202)
    People can switch search-engines every day, but groups not so. How many groups or mailing lists do you belong to? How many of those are yahoo groups. I would be very surprised if anyone belonged to half a dozen groups or more without at least one being yahoo.

    Moving a group is difficult, and it need the owner to want to. If you are a member you could set up a rival, but the chances are you would end up talking to yourself. Now suppose those groups switched to Silverlight (for a richer user experience) and required IE7 running on windows to access. This would be a big downer for any competitive desktops.
  • by ZachPruckowski ( 918562 ) <zachary.pruckowski@gmail.com> on Monday February 04, 2008 @10:14AM (#22290204)
    The concern isn't that Google has a lot of the search engine market, the concern is that Microsoft, who is an OS monopoly and a former (and still near) browser monopoly, will use their monopoly in adjacent markets to attack the the search engine market.

    Having a monopoly is fine, abusing it isn't. Google (if you call 2/3rds a monopoly) hasn't been shown to abuse its position, while Microsoft has in the past and very well might again.
  • a fixation.. (Score:3, Insightful)

    by crossmr ( 957846 ) on Monday February 04, 2008 @10:27AM (#22290298) Journal
    if anyone in the computing industry doesn't have a Microsoft fixation, you should probably stay away from them. You never know what MS will do next and given their market share that isn't exactly something you want to be oblivious to.
  • by dhavleak ( 912889 ) on Monday February 04, 2008 @10:59AM (#22290924)
    Microsoft has a google fixation? Or envy complex??

    MS woke up late to the internet. Once they woke up, their attempts at gaining a foothold were more or less unsuccessful. The offer on Yahoo is just them realizing that their web strategy needs a course correction pronto. They've built a good search engine (live.com) and ad-platform, but they can't monetize it right now because nobody goes there. Acquiring Yahoo is one of they ways to solve that problem. Yahoo has other assets that will tie in well with a software+services strategy.

    It's really that simple. MS realizes that its business model is under threat, and it's making adjustments before the pain is felt rather than after. No fixation, no envy -- just business as usual.
  • by elrous0 ( 869638 ) * on Monday February 04, 2008 @11:04AM (#22291010)
    It's funny because it presumes that Google is any less a greedy, sleazy corporation than MS. May I remind you that this is the same Google that scours its Chinese search engine of naughty terms like "democracy" just so it can make a few extra bucks?

    The only "do no evil" that Google cares about is "do no evil to the stockholders and profits."

  • Big bully? (Score:3, Insightful)

    by BeanThere ( 28381 ) on Monday February 04, 2008 @11:31AM (#22291522)
    Google's entire annual revenue fits into Microsoft's profit margin alone. Google is small compared to Microsoft. A little hard to be the 'big bully'. And unlike Microsoft's more diversified revenue stream, Google pretty much relies on one comparatively fragile market, online advertising, a market Microsoft wasn't even interested in until long after Google dmeonstrated it could be so lucrative.

    If MS wants to beat Google at online marketing, they should offer better deals to affiliate sites and advertisers.
  • by BeanThere ( 28381 ) on Monday February 04, 2008 @11:43AM (#22291768)
    It's a thousand times easier to switch search engines than it is to switch OSs. Google grew very quickly (from nothing) BECAUSE it's such a fungible product and they were so much better. A better search engine could just as easily grab that share away again. (You can't argue 'but, but, value of Google brand' either because Google's brand only became valuable after their search engine became popular, people don't get locked into "brands". And in any case, MS and Yahoo both have well-known brands.)

    In any case, Google's product isn't a search engine, it's online advertising. And also, in any case, it is pretty much hard to argue that Google gained their search monopoly by making the best mousetrap, and that Microsoft gained their Windows monopoly by strategy, lock-in, user ignorance and marketing. It doesn't invalidate anything, wtf!??!
  • by Catbeller ( 118204 ) on Monday February 04, 2008 @11:46AM (#22291810) Homepage
    Google is right to object -- and to block by helping Yahoo -- because Microsoft is an intensively abusive monopoly by culture and history and conviction. They're the neighborhood predator, and everyone living there knows it.

    Google has become successful by being very good at what it does and does it without abusing its power. Microsoft, well, if the Gentle Reader can't recite a litany of even the most recent abuses, it's useless for me to list them. Go, Google.
  • by UKRevenant ( 996944 ) on Monday February 04, 2008 @12:29PM (#22292732)
    Just something that I have not seen noted anywhere yet, but google's dominance of the search market is earned and is also fragile. I remember using yahoo and thinking it was great, then I moved over to AltaVista, then onto google, my loyalty only exists as long as I do not find a better way of getting the answers I want.

    Google is my preferred search engine and has been almost exclusively for quite some time now, but I am not tied to them in the same way I am with email and instant messaging. The potential merger between Yahoo and MicroSoft is not something I think would be good for anyone, will it improve searches? nope, MicroSoft spent a huge sum relaunching their search product, and I did try it but I still found google faster and returned the better information. As for advertising revenue, googles advertising model means they make the most money because most people use their service. Should they fail to be the best search engine, they will see drops in revenue to match. So I am not concerned by their advertising side.

    I like Yahoo and use several of their services, I fear (which is unfounded except from MicroSoft's reputation and track record) that should they get control of Yahoo it will be a bad day for the internet. I fear it would not take very long before the feeling of being able to trust Yahoo is tarnished (whether fair or not) by Microsoft's reputation and actions.

    Sadly with the premium that has been placed on Yahoo it may turn into a hostile take over by Microsoft as if they really want it who is really going to turn down the cash?

    My hope is that Yahoo's board say no and Microsoft back off not wanting to add to their negative press and image. This could be good for Yahoo as it may show that Yahoo still has a high value suggesting time could be given to management to make the changes necessary to the business and have time for a return to be seen.

    As for competition, 3 big companies trying to do the best search or 2, which gives the best environment for innovation?

    Just my 7 pence
  • by Futurepower(R) ( 558542 ) on Monday February 04, 2008 @01:47PM (#22293886) Homepage
    "No fixation, no envy -- just business as usual." We know what Steve Ballmer thinks of Google: Ballmer Throws A Chair At "F*ing Google" [battellemedia.com].

    Quotes:

    At that point, Mr. Ballmer picked up a chair and threw it across the room hitting a table in his office. Mr. Ballmer then said: "Fucking Eric Schmidt is a fucking pussy. I'm going to fucking bury that guy, I have done it before, and I will do it again. I'm going to fucking kill Google." ....

    Thereafter, Mr. Ballmer resumed trying to persuade me to stay... Among other things, Mr. Ballmer told me that "Google's not a real company. It's a house of cards."


    Maybe not fixation, maybe not envy, but SOME kind of mental illness.
  • by Asmor ( 775910 ) on Monday February 04, 2008 @01:51PM (#22293932) Homepage

    They, Microsoft, are still missing the cause. They are under threat because of who and what they are. Buying Yahoo will not fix things. It will make things even worse for them. If this happens, people will leave Yahoo services in droves because the big bully monopolist, aka Evil Empire, bought them out.
    Are you really that deluded that you think the average person dislikes Microsoft on a moral level? Some people may be annoyed with Windows or other MS products, but most people wouldn't have any objection to using a Microsoft project based solely on the fact that it's a Microsoft product.

    Remember, what is a self-evident truth to you is not to everyone. The anti-Microsoft sentiment is almost exclusive to the geek crowd, which is a teeny tiny minority, and it's hardly universal among even us.
  • Dead souls (Score:4, Insightful)

    by Serious Callers Only ( 1022605 ) on Monday February 04, 2008 @02:00PM (#22294064)
    MS woke up late to the internet. Once they woke up, their attempts at gaining a foothold were more or less unsuccessful.

    Indeed. However this move is possibly their most bone-headed reaction yet. I have no doubt it's straight from the brain of Steve I'm going to fucking kill Google [smh.com.au] Ballmer. Acquiring Yahoo is another attempt to tame the internet and tie it to Windows services, and it will fail as dismally as the last few attempts, because the internet (and Yahoo) is the antithesis of Microsoft.

    Users on the web don't like being 'monetized' unless there's something in it for them, and they'll resist attempts by MS to change that balance of power. Those attempts by MS to exploit users are inevitable because it's just not in Ballmer's (or Microsoft's) DNA to let users get something for nothing.

    For Microsoft as a company, swallowing Yahoo whole is going to create many more problems than it solves. It will drive the good engineers to Google (very few of Yahoo's people could thrive under the entirely different MS culture), it'll give Microsoft lots of new properties which directly compete with their own offerings, it'll make all the MS Live employees very nervous and trigger more internal turf wars, and finally, it will land MS with servicing lots of disgruntled users on services like Flickr who will desert in droves at the first attempt to corral them into an MS only internet (as MS is prone to do - see ActiveX, IE, Silverlight, etc). Their business model (lock in the users and milk them for profits) isn't under threat, it's past its sell by date; you can't continually abuse your users forever and expect them never to walk away, particularly not if you're trying to operate as a web services company, and I have my doubts that Ballmer et al will ever learn this lesson. They've done too well in the past by applying it to abandon it now.

    Still, if you don't work at Yahoo, and you're not keen on Microsoft dominating yet another market, this foolish move is heartening news. Google must be celebrating the beginning of the end of the dark ages of the internet. This will tie up MS for years.
  • by sexconker ( 1179573 ) on Monday February 04, 2008 @03:23PM (#22295612)
    Google grew quickly because, in the age of dial up modems, all that mattered was how fast your page loaded and how many results you returned.
  • Evil? (Score:1, Insightful)

    by Anonymous Coward on Monday February 04, 2008 @03:34PM (#22295796)
    I won't try to defend their China policy. There aren't a lot of things they CAN do, but that doesn't mean they have to do business there. If you want to compare the two, though, find me a company that does business in China and DOESN'T do those things. Hint: Microsoft does business in China and they also run a search engine.

    However, in another way, Google is FAR less evil than Microsoft. Microsoft dominates markets and then controls them for its own benefit. They always expand by acquiring someone's product and then use it to drive out as much of the competition as possible.

    Google, on the other hand, opens things up for customer benefit, like they're doing with Android in the cell phone market. They're working as an anti-Microsoft to compete by opening markets where customers are unhappy and being used.

    In other words, I have plenty of reason to prefer Google to Microsoft. Sure, someday they may well lose their leadership and turn evil. It's a very real possibility. But I won't hate them for their success until they use it for evil.

    What was that Nietzsche quote Slashdot had at the bottom of every page last week?
    "Cynicism is the only way base souls can approach truth."

"Engineering without management is art." -- Jeff Johnson

Working...