July 29, 2009

Thanks to Microsoft, Google is unleashed

Microsoft's deal with Yahoo solves Google's antitrust problems -- and worsens the threat to everyone's privacy

If you're worried that Google is too big and controls too much of the Web, there's no comfort in today's news that Yahoo and Microsoft have teamed up in search. The already slim chance that the U.S. Justice Department will go after Google on antitrust grounds has dwindled to zero now that there is a "credible" rival in the market for search advertising.

I put "credible" in quotes because the 30 percent of the market held by MicroHoo isn't going to change much in the real world. But since it looks good on paper, the trustbusters (such as they are) would have a hard time making a compelling case for any sort of meaningful action.

[ For more Microsoft-Yahoo news on InfoWorld, see "Microsoft, Yahoo deal was a long time in the making" and "Microsoft and Yahoo are said to have reached a deal" ]

Remember, Microsoft's share of the operating system market was a good 90 percent when the DOJ launched its action back in the 1990s, and there was plenty of opposition in Washington to making a move. What's more, even though the case against Microsoft was very strong, it took forever to resolve and ultimately didn't make a huge difference. Since this would-be case is so much weaker, why would Attorney General Holder and his minions bother?

But there is a real effect on us all: With two giant companies (let's call the alliance MicroHoo) now sharing data on consumers, what little online privacy we had is going to be challenged even more. That will also affect IT, since so many organizations use Google's search appliances and software.

Google's management has great political antennae, and the opportunity to operate with little chance of interference will not be lost on it. In short, Google will be unleashed by this deal.

Bye-bye privacy
The big cigars (to use Gary Snyder's apt phrase) at MicroHoo know full well that the alliance will raise red-flag warnings about the increasing concentration of private data in corporate hands. Here's how they addressed it in the announcement:

The agreement protects consumer privacy by limiting the data shared between the companies to the minimum necessary to operate and improve the combined search platform, and restricts the use of search data shared between the companies.

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JFox2009 29-Jul-09 3:04pm
1 reply
If this deal hurts some one is to Yahoo: 1. MSN is more a competitor to Yahoo core business than Google. With the data Bing will collect from Yahoo users, they will know better what to offer to Yahoo Customers than Yahoo itself. Bing gets access to all of Yahoo search Technology, and Yahoo gets a Black box, this is no access to the algorithms in Bing. So when MSN gets better answers from Bing than Yahoo, when Bing runs faster in MSN than in Yahoo, Yahoo will not have clue about, and in typical MS fashion they will do all the tricks to move the customers from Yahoo to MSN. That is the meaning of "they will continue to compete vigorously". 2. adCenter from MS, will be the door for ads so customers will get used to that, likely to invest in automation about it, and when the deal expires, would it make any sense to start over with Yahoo or better to go with MSN - Bing. Clearly this deal could have been better cut. Yahoo could have get a big Upfront payment, also it could retain more control over search or form a mixed company with MS to have full control over all the data collected by Bing about Yahoo customers habits. So it is time to kiss good bye to Yahoo. Or better to say good bye to Bartz?
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dmarois 30-Jul-09 2:23pm

What are you talking about. Everyone's privacy is already compromised. And you didn't even have to get an Internet account for it to happen. So, stop blathering about something everyone is aware of and give us news we don't know.

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