Yahoo-Google deal bad for competition, says Microsoft

Category: Search

June 16th 08, 09:02

The search advertising deal announced by Google and Yahoo! last week will drive up prices in the market and reduce competition, according to Microsoft.

Sources familiar with the software giant's stance told Reuters that the company was attempting to contact Washington-based advocacy groups last week in an attempt to drum up support for its opposition to the arrangement.

Microsoft made public its reservations about the deal last week, when it emerged that talks over a Microsoft takeover of Yahoo! had reached a dead end and the search pioneer had instead made a deal with Google.

Through the arrangement, Google ads are now to appear next to Yahoo search results.

Microsoft spokesperson Jack Evans commented last week that any deal between the two search leaders would hand over more than 90 per cent of search advertising commerce to Google.

And an email sent by Microsoft reportedly pointed out that the agreement could "destroy a competitive alternative" and "limit choice for advertisers and publishers".

This news story was brought to you by Bluhalo, a leading UK digital agency.

Related News

  1. Google websites dominate US search rankings
  2. Search data 'offers insight into important consumer issues'
  3. Microsoft unveils new internet translation services
  4. Unique content 'vital' for successful websites