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Google troubled by Microsoft move Google troubled by Microsoft move
(about 2 hours later)
Google has said it finds Microsoft's $44.6bn (£22.65bn) bid to buy rival Yahoo "troubling" and wants regulators to scrutinise the proposed deal.Google has said it finds Microsoft's $44.6bn (£22.65bn) bid to buy rival Yahoo "troubling" and wants regulators to scrutinise the proposed deal.
In a blog, Google said the tie-up could unfairly limit the ability of consumers to freely access competitors' email and instant messaging services.In a blog, Google said the tie-up could unfairly limit the ability of consumers to freely access competitors' email and instant messaging services.
It said Microsoft had previously sought "to establish proprietary monopolies".It said Microsoft had previously sought "to establish proprietary monopolies".
Microsoft made an unsolicited offer for Yahoo on Friday, and Yahoo has said it is considering the proposal.Microsoft made an unsolicited offer for Yahoo on Friday, and Yahoo has said it is considering the proposal.
Microsoft's hostile bid for Yahoo raises troubling questions David Drummond, chief legal officer GoogleMicrosoft's hostile bid for Yahoo raises troubling questions David Drummond, chief legal officer Google
Brad Smith, Microsoft's general counsel, said that the combination of the two companies would create more competition.Brad Smith, Microsoft's general counsel, said that the combination of the two companies would create more competition.
The takeover, if it goes through, would establish a "compelling number two competitor for internet search and online advertising", he said, insisting that "Microsoft is committed to openness, innovation, and the protection of privacy of on the internet".The takeover, if it goes through, would establish a "compelling number two competitor for internet search and online advertising", he said, insisting that "Microsoft is committed to openness, innovation, and the protection of privacy of on the internet".
'Underlying principles''Underlying principles'
But that view is not held by the top executives at Google.But that view is not held by the top executives at Google.
"Microsoft's hostile bid for Yahoo raises troubling questions," said David Drummond, Google's senior vice president for corporate development and chief legal officer."Microsoft's hostile bid for Yahoo raises troubling questions," said David Drummond, Google's senior vice president for corporate development and chief legal officer.
This is clearly Google's opening move in a complex game of chess that will encompass ordinary users, politicians, regulators and businessmen Darren Waters, technology editor, BBC News website. Read Darren's thoughts in full
"This is about more than simply a financial transaction, one company taking over another. It's about preserving the underlying principles of the internet: openness and innovation," he said in a company blog."This is about more than simply a financial transaction, one company taking over another. It's about preserving the underlying principles of the internet: openness and innovation," he said in a company blog.
This is clearly Google's opening move in a complex game of chess that will encompass ordinary users, politicians, regulators and businessmen Darren Waters, technology editor, BBC News website. Read Darren's thoughts in fullSearch faces huge shake-up
Mr Drummond suggested Microsoft may attempt to exert an "inappropriate... influence" over the internet.Mr Drummond suggested Microsoft may attempt to exert an "inappropriate... influence" over the internet.
"While the internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies - and then leverage its dominance into new, adjacent markets," he said."While the internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies - and then leverage its dominance into new, adjacent markets," he said.
In 2004 the European Commission fined Microsoft 497m euros for abusing its market dominance, a ruling the US company finally lost on appeal in September last year.In 2004 the European Commission fined Microsoft 497m euros for abusing its market dominance, a ruling the US company finally lost on appeal in September last year.
The Commission has since launched two new competition inquiries against Microsoft.The Commission has since launched two new competition inquiries against Microsoft.
Members of the US Congress Judiciary Committee will scrutinise the bid on 8 February.Members of the US Congress Judiciary Committee will scrutinise the bid on 8 February.
Rebuff?Rebuff?
Reports said Yahoo would consider an alliance with Google as one way to fend off Microsoft's bid.Reports said Yahoo would consider an alliance with Google as one way to fend off Microsoft's bid.
The Wall Street Journal reported on Sunday that Google's chief executive Eric Schmidt called his counterpart at Yahoo, Jerry Yang, to offer his company's help in any efforts to rebuff Microsoft.The Wall Street Journal reported on Sunday that Google's chief executive Eric Schmidt called his counterpart at Yahoo, Jerry Yang, to offer his company's help in any efforts to rebuff Microsoft.
Google's efforts aside, analysts say a bidding war for Yahoo looks unlikely given Microsoft's deep pockets.Google's efforts aside, analysts say a bidding war for Yahoo looks unlikely given Microsoft's deep pockets.
Microsoft's proposed bid, unveiled in a letter to Yahoo's board on Friday, is 62% above Yahoo's closing share price on Thursday.Microsoft's proposed bid, unveiled in a letter to Yahoo's board on Friday, is 62% above Yahoo's closing share price on Thursday.
Time Warner, News Corporation, AT&T and Comcast are some of the firms that are often named prospective suitors for Yahoo.Time Warner, News Corporation, AT&T and Comcast are some of the firms that are often named prospective suitors for Yahoo.
But, according to the New York Times, none of these companies have begun work on any rival bids.But, according to the New York Times, none of these companies have begun work on any rival bids.