Microsoft vs. Google: Is it about antitrust or just a case of sibling rivalry
March 1, 2010 - By Justin E. Gehrke
March 1, 2010 – As last week came to a close, Microsoft tried to ruin Google’s weekend by launching what could only be called a strong attack on Google Inc. What is the charge? Microsoft, through one of its child companies, teamed up with two online companies to formally lodge a complaint regarding what they call “anti-competitive” practices, to regulators in the European Union.
What are Microsoft and the other company’s allegations?
In addition to lodging their complaint, Microsoft went as far as to publicly encourage other companies they consider to be potential victims to submit their own complaints. At the heart of the battle are ongoing plans by Google to digitize millions of books. In an official Microsoft Blog, Dave Heiner, Deputy General Counsel at Microsoft, wrote, “Our concerns relate only to Google practices that tend to lock in business partners and content…” He also went on to say that Google’s actions “…exclude competitors, thereby undermining competition more broadly.” Microsoft’s assertion is that Google’s actions are anti-competitive in nature and pose a threat to many other companies.
Is Microsoft trying to deflect the twenty-year spotlight?
Microsoft’s allegations are ironic, since they, for the past twenty years, have continually been a target of U.S. and European regulating agencies. Usually, the contention is that Microsoft repeatedly attempts to monopolize the technology market, based on the way it builds and distributes its operating systems and software. Considering their own continued battles with smaller computer and software companies, one would think Microsoft would be more sympathetic regarding similar claims brought against Google…not be initiating one, themselves. Heiner continued Microsoft’s assault by adding that the complaints “refelct aggressive business stances taken by Google.” Additionally, he went on to say that some of the complaints “appear to raise serious antittrust issues.” This statement, too, has its own degree of irony, since, again, these are some of the same things said about Microsoft, during its rise to computing superstar status.
Is it all just an attempt by Microsoft to fend off the competition?
Considering the meteoric rise of Google, since its days as a simple internet search engine, it is no surprise that Microsoft may be concerned. Google quickly overtook Microsoft’s MSN search engine, in popularity, quickly after being released. Additionally, Microsoft’s Hotmail platform reigned supreme with Yahoo Mail, until Google’s Gmail came along and bit into the webmail pie. Since then, Google has launched web-based applications, chat, voice services, and social media tools, just to name a few. Add to that the fact that Google has both the Chrome browser and Chrome operating system in beta and its no wonder Microsoft might be worried.
The fight hearkens back to days gone by when companies, like Ford and Chevrolet, competed for business the right way…by building quality products. Unfortunately, Microsoft comes across, not as a victim, but the overshadowed big brother. So is this virtual sibling rivalry justified or just a case of Microsoft refusing to admit they can’t have the internet and its user’s to themselves? The response from European Regulatory agencies will probably go a long way toward quieting Microsoft down or prompting them to raise their voices even more. It might be time, though, for Microsoft to acknowledge that their reign on operating systems and all that they touch cannot go on forever.
