Google Reacts to Microsoft’s Unsolicited Bid for Yahoo

The first sparks of a clash between Microsoft and Google were seen today when David Drummond, a Google senior vice president and its senior chief legal officer, said in an open letter that the combination of Microsoft and Yahoo could stifle competition on the Web and called on policy makers to challenge the merge.

Sure enough, Google Inc. fired back on Sunday at Microsoft Corp’s $44.6 hostile bid to acquire Yahoo Inc. accusing Microsoft of seeking to extend its computer software monopoly deeper into the Internet cloud.

Drummond argued that Microsoft’s power originates from decades—old monopolies in Windows — the software operating system used to control most personal computers— and Internet Explorer, which is the default browser consumers used to navigate the Web.

Microsoft’s acquisition of Yahoo would combine the No. 1 and No. 2 suppliers of Web-based e-mail, instant messaging (IM) and portals, which act as starting points for hundreds of millions of users seeking information on the Web.

A person familiar with Google’s position said the company believes Microsoft is using the same strategy it did in the 1990s to shift Windows users away from Web browser pioneer Netscape Communications to its own Internet Explorer. This situation was discussed extensively in U.S. courts. “It is the same old story,” the source said.

If you want to read the open letter penned by David Drummond dubbed Yahoo! and the Future of the Internet, please click here. I’m sure this is the beginning of a long and violent war amongst two Internet behemoths. I saw this coming a long time ago.

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