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Google raises questions over MS' bid

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CIOL Bureau
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BANGALORE, INDIA: Google has reacted for the first time to Microsoft’s proposal to acquire Yahoo!.

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In a posting on its blog on Sunday, David Drummond, senior vice president (Corporate Development and Chief Legal Officer), Google, said that Microsoft’s hostile bid raises troubling questions.

“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,” noted Drummond on the blog.

Coming out harsh on Microsoft, Drummond hinted at the possible negative consequences in case Microsoft acquires Yahoo!, expressing apprehension that Microsoft would exercise the same inappropriate and illegal influence over the Internet that it did with the PC.

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“While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies -- and then leverage its dominance into new, adjacent markets.”

Drummond sought to know if the combination would restrict users from accessing competitors' email, IM, and web-based services, as Microsoft has dominant position in PC software.

Both Microsoft and Yahoo! have presence in email, IM and web-based services space.

“We take Internet openness, choice and innovation seriously. They are the core of our culture. We believe that the interests of Internet users come first -- and should come first -- as the merits of this proposed acquisition are examined and alternatives explored,” said Drummond.

Last week, Microsoft had proposed to acquire Yahoo! for $44.6 billion. Yahoo! said it is evaluating the proposal. Microsoft’s bid is being seen as a move to dominate the Internet space, especially the online advertising segment, where Google has the upper hand over both Microsoft and Yahoo!. 

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