Business | Technology
Google-Yahoo deal miffs Microsoft
Microsoft has sought to enlist support for its opposition to a new advertising collaboration deal between Google and Yahoo, two sources familiar with the matter told Reuters.
- Reuters
- Published: 00:06 June 15, 2008
Washington: Microsoft has sought to enlist support for its opposition to a new advertising collaboration deal between Google and Yahoo, two sources familiar with the matter told Reuters.
One day after the companies announced an agreement allowing Google to sell search ads on Yahoo's website, Microsoft contacted advocacy groups that work to influence policy in Washington.
According to one source who was contacted by Microsoft, the software company said in an e-mail that the Google-Yahoo agreement would "limit choices for advertisers and publishers" and "destroy a competitive alternative."
Competition
Specifically, Microsoft takes the view that the deal is akin to a price-fixing agreement, with Google and Yahoo effectively setting a minimum price for advertisements on some key word searches, according to another source familiar with Microsoft's thinking.
"The effect of that is sitting down and agreeing, 'We won't go below [the minimum price]'," this source said.
Microsoft also believes the arrangement will lead to the demise of Yahoo's own search advertising business, eliminating a competitor, he said.
Microsoft spokesman Jack Evans on Friday reiterated Microsoft's overall objections to any Google-Yahoo deal, saying it would make the internet advertising market less competitive.
"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," Evans said.
Microsoft later said in statement its lobbying approach "reflects our belief that we have a responsibility to engage with policymakers on issues that impact our products, customers, shareholders and the industry overall..."
Share this article
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
It costs a million to raise a child
Generation Z doesn't leave home at 18, but stay with the parents until mid-20s
-
Investing in funds doesn't come cheap
Many people are unaware of the effect of different expenses on their returns
-
Firm turns televised events into marketing dream
Drops anchor in Dubai to sell world's richest yachting races
