Why the Microsoft Yahoo Merger Wont Create Competition

The announcement of the unsolicited Microsoft bid to merge with Yahoo sent shockwaves through the industry last Friday. Microsoft, in sending an unsolicited merger proposal to the Yahoo board of directors, made one thing perfectly clear, they plan to dominate the internet just like they dominate the software industry.

Let's look behind the curtain so cleverly put up by Microsoft to see what's really going on here. Could Microsoft's merger with Yahoo really spurn needed competition in the online search industry? Not likely, in fact it only serves to eliminate the one company with the best shot at taking on Google, Yahoo. Is competition really that bad? Not really. Yes, Google now dominates the search sector and yes, they dominate the search ad market too. But the search industry as a whole is still in its infancy, even after a decade. And let's face it, Yahoo isn't losing money, in fact it's making quite a bit of it and are in no danger of corporate collapse.

So, basically Microsoft is saying, that after a whole few years of a company dominating a sector that a merger that eliminates a competitor is the answer? How long has Microsoft been dominating the software industry? Almost almost 30 years? That's 3 decades of one company dominating a major sector with no competition in sight. This merger is nothing more than classic Microsoft anti competitive behavior. If you can't beat 'em, buy 'em if you can't buy 'em, destroy 'em. We've seen this time and time again from Microsoft; it's their "MO". Microsoft should not be allowed to be the company that competes with Google on principle alone. Microsoft, in gathering any amount of strength in the internet market would gain far too much control in the technology sector as a whole.

The reason Microsoft and Yahoo aren't putting up good competition with Google is simple, they still depend on the "portal with search included" model, where as Google is "search with some portal on the side" model. Simplicity has been and will continue to be the reason Google is the behemoth of search. In fact the only real competition to Google has been Baidu.com in the Asian market. Notice something with Baidu? Yup, their a Google clone for the Asian market. In using Google's strengths against Google, Baidu has dominated the Asian search market bar none.
I strongly urge the SEC and the Department of Justice to disallow this merger on the basis of its anti-competitive intent and the enormous gain in power it gives to Microsoft, a company that already has far too little competition in the technologies industry.