Microsoft hits back at Google

Microsoft hits back at Google


That's a one word summary of Microsoft's statement Sunday rebutting Google's statement earlier in the day that said Microsoft's $44.6 billion bid for Yahoo could raise antitrust concerns.

"The combination of Microsoft and Yahoo will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising," Microsoft lawyer Brad Smith said in a statement. "The alternative scenarios only lead to less competition on the Internet."

Smith argues that Google already has three-quarters of the paid search market and about two-thirds of U.S. search queries and 85 percent in Europe.

Meanwhile, Reuters is reporting that Yahoo is considering some type of tie-up with Google, potentially something smaller than an all-out acquisition. Google Chief Executive Eric Schmidt phoned Yahoo Chief Executive Jerry Yang on Friday to discuss how to avoid a Microsoft takeover, either by offering money or guaranteed revenue in exchange for Yahoo outsourcing its advertising to Google, according to a report in The Wall Street Journal. A Google spokesman said the company had no comment on the report, and Yahoo representatives could not be reached for comment.