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The main concern revolves around how their new partnership might impact ad pricing online. This is something of a silly question considering that Google owns about 70% of that entire market, and that combined Yahoo and Microsoft maybe owns about 20% of the market. It is somewhat bewildering to me that the Justice Department would question this deal and worry about anti-competitive pricing when essentially the entire industry of search engine driven ads is entirely uncompetitive.
In fact, my tin foil hat alert is on yellow alert here because I’m trying to remember a time when Justice ever stepped in to stop a second/third ranking participant in an industry combing against the leader in the market like Google is. If anything, this combination encourages more competition because someone is finally able actually make a ding (or a Bing) in Google’s overwhelmingly dominance. Why would the Obama administration single out Microsoft in favor of Google? Could it have anything to do with the fact that Obama has several former Google members working for him?
Let’s just say that I’m very skeptical of this and, from a legal standpoint, it is pretty clear to me that the Microsoft/Yahoo combination is good for consumers, good for competition and is almost certainly not an anti-trust problem. It’s good to know the President I guess.