Microsoft has voiced concern that Yahoo’s intended deal with Google would violate anti-trust laws. The deal would allow Yahoo to place Google advertisements on their site and collect revenue from them. The General Counselor for Microsoft cited alleged comments from Yahoo Chief Jerry Yang regarding a “bipolar” market with Yahoo and Microsoft at one end, and Google at the other.
(Yang) said ‘If we do this deal with Google, Yahoo will become part of Google’s pole and Microsoft,’ he said, ‘would not be strong enough in this market to remain a pole of its own,”‘ Smith told the Senate Judiciary Committee’s antitrust subcommittee on Tuesday.
I find this statement rather ironic since Microsoft recently attempted to acquire Yahoo. After Yahoo’s public chastening of the software mogul, Microsoft is now backing one of the main investors, Carl Icahn, to obtain a controlling share of Yahoo and clean house amongst Yahoo’s committee members.
In defense of the deal, Google’s Chief Legal Officer David Drummond stated “Google and Yahoo will remain fierce competitors. This agreement will not remove a competitor from the field.”
The full story, albeit on Yahoo, is available here.