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Google plays antitrust card on Microsoft's Yahoo bid

Gregg Keizer, The Industry Standard02.04.2008
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"Any number of companies might take an interest [in Yahoo]. I think there is really one company that cannot. That is Google itself. Given that Google has roughly a 75% market share worldwide for online page search, they are not in a position to do this. Given its super dominant market share, Google is clearly prevented by the antitrust laws from buying Yahoo or buying this business from Yahoo."

For his part, Drummond hinted that Google would fight the Microsoft-Yahoo merger on antitrust grounds. "There is plenty of time for these questions to be thoroughly addressed," he concluded. "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."

On Friday, a spokesman for the European Union's Competition Commission declined to comment on any action it might take, noting that it was up to the bidding company -- in this case Microsoft -- to ask for approval. The Department of Justice, meanwhile, was quoted in several news reports Friday as saying that it was interested in scrutinizing the deal on antitrust grounds.

"The antitrust division would be interested in looking at the competitive effects of the proposed transaction," DOJ spokeswoman Gina Talamona told several outlets Friday, including the San Jose Mercury News.

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