Will Google Give Microhoo a Free Pass?
A free pass on what you ask? Well, a free pass on the partnership of Microbing and Yahoo as it morphs into Microbingahoo to provide search from bing that will be sold by Yahoo that will make the online world a better place because of competition. You remember that one, right?
Funny how we forget about the big news of the summer when there is no speculation or guessing whether it would or wouldn’t happen and if it did what it would look like. Well, we wouldn’t want this to go 18-24 months without a little Google induced drama now, would we?
Enter Google’s presence in Washington, DC. Of course, they align their firepower in the political arena for just such occasions. It’s only fair since Microsoft (and Yahoo too?) have their folks in the capitol to ‘fight for their right to partner’ (insert lyrics into Beastie Boys song “You Gotta Fight for Your Right to Party” – we may have an underground hit).
AdAge tells us of the behind the scenes activity
The Mountain View, Calif.-based giant hasn’t taken an official position on the proposed deal, but it is quietly disseminating a view to regulators, politicians, analysts and journalists: that the need for scale is not a valid case for approving Microsoft’s search deal with Yahoo.
This, of course, is the core argument in favor of the deal: that Microsoft and Yahoo cannot compete effectively against Google in search on their own and that their deal would make the search market itself more competitive.
This kind of action is no surprise. In fact, I have been wondering when the fireworks would begin. While it appears as if there will be little to truly get in the way of regulatory approval of this partnership you would have to expect this gamesmanship from Google. If for nothing else, to get some publicity and make a public case before they will appear to be magnanimous enough to let the partnership happen. Why would they let it happen without much of a fight other than for show? I suspect it would be supreme confidence that they will crush the new Micro – whatever no matter what form or name it takes.
Google is busy with other issues, as well, like its book settlement so this is just part of their day to day activities in DC. Depending on the source, their level of engagement varies.
Another executive close to the process described Google as “actively” lobbying against the deal, but Google said it is just responding to a Justice Department requests for its opinion.
There are many angles to this an honestly the AdAge Article does a real nice job of laying out the issues around scale and pricing power that are at the core of the arguments both for and against the partnership.
So we at Marketing Pilgrim say “Let the he said, she said begin!” After it’s all said and done what will this look like and will any of these efforts serve to do anything other than keep brands in the news? Not likely. What will really be interesting is if any of this effort from Microsoft and Yahoo will truly put a dent in ‘The Goog’ at all.