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Microsoft went to Congress to complain over Yahoo! and Google advertising deal. Microsoft is concerned if the non-exclusive deal between 2 giants will harm the advertising market.

Yahoo estimated it may earn $800m in advertising from this deal.

“Never before in the history of advertising has one company been in the position to control prices on up to 90 per cent of advertising in a single medium,” said Brad Smith, general counsel at Microsoft.

“If search is the gateway to the internet, and most believe that it is, this deal will put Google in a position to own that gateway and the information that flows through it.”

Microsoft is afraid Google may have the power to raise the prices of advertising in their network without having to worry about other companies. Microsoft claims that kind of situation may harm big and small businesses.

Microsoft is also concerned about user privacy. They are afraid Google will hold nearly unlimited number of informations and data about advertisers behavior in their ad network.

“If one company controls up to 90 per cent of online search advertising it will have a complete picture of your online activities,” said Brad Smith.

“If that happens, Congress will not need to enact a federal privacy policy. We will already have a national privacy policy - Google’s privacy policy.”

Microsoft that way is trying to do something about the deal between Yahoo! and Google. They try to bring attention of the Congress about the issue of user privacy and market negative impact.

It’s a desperate attempt to stop Google and Yahoo! from cooperation as that cooperation means that Microsoft is on its own. And in this highly competitive field they can not afford to loose.

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