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Google exec: Microsoft's Yahoo bid 'troubling'

Posted: 06 Feb 2008 ?? ?Print Version ?Bookmark and Share

Keywords:Yahoo acquisition? Internet future? Web-based services?

Responding to news of Microsoft's bid for Yahoo Inc., David Drummond, senior VP of corporate development and chief legal officer of Google, noted in his Feb. 3 blog entry that "Microsoft's hostile bid for Yahoo! raises troubling questions."

Writes Drummond: "The openness of the Internet is what made Googleand Yahoo!possible. A good idea that users find useful spreads quickly. Businesses can be created around the idea. Users benefit from constant innovation. It's what makes the Internet such an exciting place."

According to Drummond, Microsoft's bid is "more than simply a financial transaction, one company taking over another." He said that the bid brings the possibility of Microsoft's attempt to exert "inappropriate and illegal influence over the Internet." Regarding this, he raised the question if the combination of the two firms will "unfairly limit the ability of consumers to freely access competitors' e-mail, IM and Web-based services."

"We take Internet openness, choice and innovation seriously. They are the core of our culture," wrote Drummond. In his closing statement, he urged that the merits of the proposed acquisition to be examined and alternatives explored.

Microsoft's reply
On the same day, Brad Smith, general counsel of Microsoft released a statement saying that the proposed combination of Microsoft and Yahoo "will create a more competitive marketplace by establishing a number two competitor for Internet search and online advertising," noting that Google is currently dominant in the two fields.

Smith added that Microsoft is "committed to openness, innovation and the protection of privacy on the Internet" and that the proposed combination will advance these goals.

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