Tuesday, 5 February 2008

Microsoft Retaliates Back at Google

Since it made headlines with its surprising bid to buy out Yahoo Inc. Microsoft has been the target of criticisms, one which comes in the form of Google.

The Internet search engine giant promptly released a statement once Microsoft made its interest in Yahoo public, calling Microsoft’s move “hostile” and that it “raises disturbing questions.”

Google went on to berate Microsoft’s reputation for not encouraging openness, which according to the Mountain View, California organisation is the core of its culture and that a merger of both Yahoo’s and Microsoft’s popular Internet portals, email and instant messaging (IM) capabilities may result in a PC software monopoly, unfairly limiting the ability of consumers to freely access similar web-based services offered by competitors.

In response, the Redmond, Washington based Microsoft released a statement on its website stating that the combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.

“The alternative scenarios only lead to less competition on the Internet,” wrote Brad Smith, General Counsel, Microsoft.

“Today, Google is the dominant search engine and advertising company on the Web. Google has amassed about 75 percent of paid search revenues worldwide and its share continues to grow. According to published reports, Google currently has more than 65 percent search query share in the U.S. and more than 85 percent in Europe. Microsoft and Yahoo! on the other hand have roughly 30 percent combined in the U.S. and approximately 10 percent combined in Europe.

“Microsoft is committed to openness, innovation, and the protection of privacy on the Internet. We believe that the combination of Microsoft and Yahoo! will advance these goals.”

Google is currently leading the internet search and advertising business, a market Microsoft has been striving to gain a foothold in.