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Monday, June 16, 2008

Microsoft ga ga over Goo-Hoo! deal

By Kelly Fiveash Monday 16th June 2008

Microsoft kicked off a campaign on Friday against the advertising collaboration deal struck between Google and Yahoo!, Reuters reports. Quoting two sources familiar with the matter, the news agency said that just one day after Google agreed to sell ads on Yahoo!’s website Microsoft contacted Washington-based advocacy groups that work to influence policy. According to one source who received an email from the software giant, Microsoft grumbled that the search, advertising and IM deal between its two biggest internet rivals, which was inked last Thursday, would “limit choices for advertisers and publishers” and “destroy a competitive alternative.” However, Google and Yahoo! have – presumably in an effort to avoid scrutiny from European Union and US regulators – stressed that the new tie-up is not a merger, won't take out any competitors, increase Google's share of search traffic or prevent Yahoo! from making similar arrangements with others. Microsoft, if the quoted sources are to be believed, unsurprisingly disagrees.

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