Feeds

Microsoft ga ga over Goo-Hoo! deal

Software giant campaigns against Google-Yahoo! tie-up

Eight steps to building an HP BladeSystem

Microsoft kicked off a campaign on Friday against the advertising collaboration deal struck between Google and Yahoo!, Reuters reports.

Quoting two sources familiar with the matter, the news agency said that just one day after Google agreed to sell ads on Yahoo!’s website Microsoft contacted Washington-based advocacy groups that work to influence policy.

According to one source who received an email from the software giant, Microsoft grumbled that the search, advertising and IM deal between its two biggest internet rivals, which was inked last Thursday, would “limit choices for advertisers and publishers” and “destroy a competitive alternative.”

However, Google and Yahoo! have – presumably in an effort to avoid scrutiny from European Union and US regulators – stressed that the new tie-up is not a merger, won't take out any competitors, increase Google's share of search traffic or prevent Yahoo! from making similar arrangements with others.

Microsoft, if the quoted sources are to be believed, unsurprisingly disagrees.

The company has alleged that the two firms signed what amounts to a price-fixing agreement by effectively setting a minimum price for ads on some key word searches, according to another source familiar with Microsoft’s thinking who spoke to Reuters.

Microsoft was not immediately available for comment on any Redmond-led campaign that opposes the Goo-Hoo! deal.

On Friday Microsoft spokesman Jack Evans reiterated the firm’s party line on the agreement saying that it would hamstring competition in the increasingly lucrative web ad marketplace.

"Our position has been clear since April that any deal between these two companies will increase prices for advertisers and start to consolidate more than 90 per cent of the search advertising market in Google's hands," he said.

The US Senate's Antitrust Subcommittee said late last week that it will investigate Yahoo!'s Ballmer-battling search tie-up with Google. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.