Google blasts Microsoft's bid for Yahoo

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Search giant Google has hit out at Microsoft's $44 billion bid for rival Yahoo, claiming the merger raises some "troubling questions."

"Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the internet that it did with the PC?," said David Drummond, chief legal officer in a post on the company's official blog.

"Between them, the two companies operate the two most heavily trafficked portals on the internet," he continues. "Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors' email, IM, and web-based services? Policymakers around the world need to ask these questions and consumers deserve satisfying answers."

However, Microsoft isn't taking the allegations lying down, swiftly turning talk of monopolies on its head.

"Google has amassed about 75 per cent of paid search revenues worldwide and its share continues to grow," said Brad Smith, Microsoft's general counsel.

"According to published reports, Google currently has more than 65 per cent search query share in the US and more than 85 per cent in Europe. Microsoft and Yahoo on the other hand have roughly 30 per cent combined in the US and approximately 10 per cent combined in Europe."

"The combination of Microsoft and Yahoo will create a more competitive marketplace by establishing a compelling number two competitor."

However, Microsoft may yet rue talking about the acquisition as if it were a done-deal, with reports suggesting Yahoo is considering alliance talks with Google.

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