Monday, February 4, 2008

Should Microsoft and Yahoo be able to get together?

First of all, if the merger between Microsoft and Yahoo is defeated (I'm assuming Yahoo will take the bid), it should be due to CONSUMER exploitation. Not because Google is complaining about it. Google claims that a merger would allow Microsoft to exploit consumer positions in E-mail and instant messaging. This doesn't pass my sniff test. Instant messaging is already incompatible with competitors, so a merger won't change anything there. I doubt they would start charging for instant messaging or e-mail because they are both fairly old technologies. This merger would only give Microsoft large positions in decaying "web 1.0" technology. Google has won "Web 2.o." I think this deal will have to do more with the battle for "web 3.0" than monopolization.


Travers said...

How about Google returning the favor from when Microsoft complained Google buying Double-Click would lead to a monopoly in on-line ad serving?

Hayekian said...

I'm unsure how this is a problem? I think history (post 1900) is fairly clear on the long term prospects of a monopoly (not good). While networks are notoriously hard to break into, a far superior product easily reaches the tipping point and old networks are abandoned. I'm not worried about anyone.. especially not the consumer - in fact I look forward to what this sort of integration will come up with.

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