Google's Page rips Microsoft, says Yahoo ad deal OK

ByABC News
May 23, 2008, 4:54 AM

WASHINGTON -- Google billionaire co-founder Larry Page criticized a potential Microsoft takeover of Yahoo, saying it would concentrate too much power in the online communications market, stifling innovation and curbing competition.

But he discounted the idea that an advertising deal between Google and Yahoo one the two companies are now exploring would present any potential antitrust problems.

In his first official trip for Google to the nation's capital, Page spoke at a forum sponsored by the New American Foundation think tank about expanding affordable access to high-speed Internet service and opening up cellular networks to more applications, services and devices.

The territory was friendly as Google Chief Executive Eric Schmidt was recently elected chairman of the think tank, which counts telecommunications and technology policy in its varied body of work. Schmidt, a board member since 1999, was not at the talk.

Page said a successful Microsoft-Yahoo deal would "close a lot of things that are really important ... like instant messaging" and also Web-based e-mail communications.

"Now, if you put 90% of communications all in one company ... that's really a big risk, especially one (Microsoft) that has a history of doing bad stuff," he said. "So if you want to have good products you need to have some degree of openness."

However, ComScore Inc. earlier this year provided data that showed a combined Microsoft-Yahoo company would have about a 70% e-mail and instant messaging market share in the United States and a 77% market share worldwide. ComScore figures were from December.

Court oversight of Microsoft's market power began in 2002 after an antitrust settlement was reached among Microsoft, the federal government and 17 states, barring the software maker from seeking deals with computer makers to exclude rival software. It was intended to also keep the company from using its operating system monopoly to hinder competition in other products. Microsoft also faces scrutiny in the European Union, where regulators have opened two antitrust probes.