Last week, when Microsoft’s attempt at buying Yahoo stranded, Steve Ballmer specifically mentioned Google, and how a possible deal between Google and Yahoo would limit choice and competition in the marketplace. Google explained yesterday how it would fend off possible antritrust concerns following an ad-sharing deal with Yahoo. In addtion, Google noted the irony in Microsoft’s complaints.Google co-founder Sergey Brin explained that advertising and internet advertising are much broader than just search advertising. Chief Executive Eric Schmidt added “It’s incorrect to assert there’s lock-in or opportunity for dominance in the ad space. Don’t map (computer) platform economics to ad economics.” Schmidt refused to comment on a possible Google-Yahoo deal.
The test Yahoo and Google performed, during which Yahoo showed Google text ads alongside Yahoo search results, was a success. “We had a really good dynamic. We were able to implement it quickly. The technology teams got along well. They were able to get the protocols working very easily and able to gain a lot of insights,” Brin said.
Google also criticised Microsoft for raising the antitrust concerns in the first place, stating that the company has used its Windows dominance to promote the use of its MSN Internet portal. “A lot of the traffic to MSN has come through bundling the operating system and the browser,” Page said.
Google has had a monopoly on search for quite awhile now, and has used their monopoly on search to gain market dominance in the internet ad market.
Just because they have been able to dodge the monopoly stick for this long doesn’t mean its not going to happen. They need to be very careful about moves like this, or they are going to learn how fun it is to gain monopoly status.