Microsoft takes on Google

Well Google clearly has Microsoft rattled. Microsoft which at one time appeared to be rolling over everyone else and to have the Internet at its feet has fired a salvo at Google with the release of a statement raising concerns about Google's acquisition of DoubleClick. The statement read;

"This proposed acquisition raises serious competition and privacy concerns in that it gives the Google-DoubleClick combination unprecedented control in the delivery of online advertising, and access to a huge amount of consumer information by tracking what customers do online. We think this merger deserves close scrutiny from regulatory authorities to ensure a competitive online advertising market."

The suggestion that anti-trust regulators have a look at Google is of course a bit rich coming from Microsoft which has been the subject of so much scrutiny for its business practices. It would seem that the Microsoft cash cow is not happy that someone else is grazing its fields.


Microsoft of course had problems with the U.S. Justice Department which accused it of monopolization. It has also had long running antitrust disputes with European regulators. Microsoft would of course not be doing this just to give Google a headache and spoil the party. Perish the thought.

Microsoft was itself an unsuccessful pursuer of DoubleClick. So no sour grapes there then.

Its unlikely that Microsoft can make much of a case against Google if we take a cool look at facts. Google and DoubleClick were never direct competitors so how can it be argued that their combination will harm competition?

Google's forte is online search and contextual advertising while DoubleClick specializes more web display advertising especially video. DoubleClick arguably supplies more sophisticated advertising.

According to Microsoft's general counsel a combined Google and DoubleClick would handle over 80% of the ads online. even if that is true the online advertising business is still only a fraction of worldwide advertising activity.

They may get Google one day but it doesn't look like this will be it. So for now the Google Cash Cow grows fatter still.

And Microsoft - it makes you wonder - are they beginning to lose their way? Just what are they going to do with all that money?