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MS Urges Antitrust Scuttling of DoubleClick Deal
Posted by
kdawson
on Mon Apr 16, 2007 05:38 AM
from the pot-and-kettle dept.
from the pot-and-kettle dept.
Microsoft contends that Google's $3.1 billion deal to buy DoubleClick would hurt competition in the online advertising market. And Microsoft expects AT&T, Yahoo, and other companies to join them next week in protesting the proposed sale.
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Google buys DoubleClick for $3.1 Billion 351 comments
marvinalone writes "The New York Times reports that Google has purchased DoubleClick. That seems to be the conclusion to the speculation we've talked about earlier. From the article: 'Google reached an agreement today to acquire DoubleClick, the online advertising company, from two private equity firms for $3.1 billion in cash, the companies announced, an amount that was almost double the $1.65 billion in stock that Google paid for YouTube late last year.'"
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MS Urges Antitrust Scuttling of DoubleClick Deal
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MS knows what it is talking about (Score:5, Funny)
Re:MS knows what it is talking about (Score:5, Insightful)
Re:MS knows what it is talking about (Score:5, Insightful)
(Last Journal: Friday December 01 2006, @10:51AM)
MS will have the ability to control it all via windows and MSIE (whereas Google does not have the ability to control except via natural). And while Google is tied in with firefox, MSIE still occupies 85% of the market. And with MS's past history, it should be obvious that they will tie all this together and kill off google. So what if they have to pay a later fine of 10-20 Billion? They will have created another monopolistic market that will earn them 2-10x that amount each year.
Re:MS knows what it is talking about (Score:5, Insightful)
So they want to stop Google from buying DoubleClick so that they could buy it themselves? Will they ensure that competition will remain vibrant if they buy it, or is competition just important when Microsoft is not involved?
Re:MS knows what it is talking about (Score:5, Insightful)
(Last Journal: Friday December 01 2006, @10:51AM)
Differences (Score:5, Insightful)
(http://weston.canncentral.org/)
Microsoft is a convicted monopolist and serial abuser of said monopoly power with an operational philosophy/culture that encourages this. Google isn't.
For the most part, their 'product' is invisible.
Maybe to the average consumer. Not to those buying online advertising.
While Google has many competitors in that marketplace, none of them get a lot of press. Or any press at all, aside from trade journals.
It's because none of Google's competitors have managed to duplicate both sides of their business:
(a) online advertising
(b) interesting, useful, highly usable information technology services
Google has good stuff on both sides of the equation. They sell ads on websites. They create websites that are premeire destinations on the web and sell ads on them. Nobody else really does both of them as well.
There are many competitors that do online advertising pretty well. And those are invisible to Joe Consumer, but not to those buying online advertising (hence the trade journals).
Re:MS knows what it is talking about (Score:5, Insightful)
(http://www.manifoldone.com/)
For the record, Microsoft doesn't really have anything to compete with Google in the advertising space right now.
That's the best argument there is for not allowing MS to purchase Doubleclick. Microsofts can leverage it's monopoly on the desktop to then control the online advertising business and then have monopoly on that as well. The way they used the same monopoly to gain monopoly control of the browser market.
Re:MS knows what it is talking about (Score:5, Informative)
(http://www.cabochon.com/)
They recently stopped using Yahoo's ad service and started their own. And it sucks.
You'd think being johnny-come-lately that they'd, you know, copy the good features of the other big 2 and support things like being able to upload entire campaigns for large #'s of keywords and ads. Nope, the best they can do is single ad groups, one at a time, in two sheets, one for words and one for ads, which isn't really faster than cutting and pasting them into a web form.
I recently had to change the text on several hundred ads and instead of merely importing a spreadsheet of the changes, perhaps generated for my by Google or Yahoo (which they do, despite the fact that it lets their customers try other ad sellers that support such a feature:) It took me about 10 minutes each on google and yahoo. I won't be done with MS adcenter for at least 2 days.
Re:MS knows what it is talking about (Score:5, Insightful)
(http://www.nine-times.org/)
It strikes me, however, that even if this would constitute some sort of monopoly, it doesn't touch Microsoft in terms of harm to the consumer. First, I'm still not sure how Google can really abuse the market, even if they do control a large portion of it. People will still be able to use different search engines and different ad services. Plus, if Google somehow ruins the online ad market, it harms... well.... the online ad market. Am I the only one who's not entirely scared by that? I guess I don't buy the idea that, absent of ads, people would simply stop putting content on the web.
Maybe I'm screwy, but I care much more about the OS and Office Suite markets. I'm not expert enough to know whether they should take action to stop this deal with Doubleclick, but Microsoft appealing to anti-trust laws means they accept the validity of the principle.
Re:I'm glad they lost (Score:5, Funny)
(http://ibeentoubuntu.blogspot.com/ | Last Journal: Monday October 01, @07:28PM)
HAHAHAHAHA (Score:1)
(http://agenthex.com/)
Wait... wasn't Microsoft.. (Score:5, Insightful)
(http://www.ekero.com/)
Unhappy loser?
Re:Wait... wasn't Microsoft.. (Score:5, Insightful)
Re:Wait... wasn't Microsoft.. (Score:5, Informative)
Having seen MS and Yahoo's business practices, in a word, YES.
Before Microsoft became the god of the OS world, they pulled every trick in the book to try to kill people in the markets they wanted to be in. They killed the DOS market by tying sales of Windows 3.1 to MSDOS. When that was blocked, they released Win95 under the lie that MSDOS was integrated into it and not actually a separate component (which was later proven a lie when people found out how to replace MSDOS with other versions.) Almost the same thing happened in the IE/Netscape war for dominance.
And when Microsoft entered the system utilities world, they killed of their competitors by outright stealing. Can you honestly say you've seen something like the STAC/Doublespace issue pop up with Google?
There is a very legitimate excuse to say "at least it's not Microsoft", whatever Google's 'evil' has been, it's been outside their business practices towards their competitors. Their mistakes have been working with people the Western world frowns upon. Not trying to channel the spirits of every robber baron that's ever lived. There is no reason to currently think they would turn into the next Microsoft.
Re:Wait... wasn't Microsoft.. (Score:4, Insightful)
Not a good reader? Last line it all. (Score:5, Insightful)
(Last Journal: Friday December 01 2006, @10:51AM)
Google is a natural monopoly and has earned their position. Until they tie it to something or pull an illegal act, they should not be regulated (but should be watched to make sure that they do not do a MS). But it is in the consumer's best interest to not allow this.
MS, OTH, has shown that they are an illegal monopolists (multiple times) and will obviously continue their actions. Always. Why? Because it is FAR cheaper to cheat and pay the trivial penalties that govs. apply, then it is to have to compete fairly. They should also be banned.
Re:Wait... wasn't Microsoft.. (Score:4, Insightful)
(Last Journal: Friday December 01 2006, @10:51AM)
Microsoft concerned about Anti-Trust? (Score:5, Funny)
Re:Microsoft concerned about Anti-Trust? (Score:5, Funny)
eBay & PayPal (Score:2, Insightful)
MS Urges Antitrust Scuttling of DoubleClick Deal (Score:5, Funny)
Did you mean: MS Urges Scuttling of Antitrust
Hard to argue (Score:5, Insightful)
When they can afford to lower costs for advertisers, having no competition means they don't have to bother. When they can afford to pay more to webmasters, no competition means they don't have to bother. Even a consumer can get screwed by this, since it'll be all but impossible to visit a site that isn't covered with DoogleClick ads, making 'voting with your feet' impossible. Very rarely does a corporate merger get to screw two sets of customers *and* the general public in one swoop.
For those who say "But they did it with YouTube, so no problem, right?"... YouTube isn't really comparable, since there's a lot of other video sharing sites. YouTube was the biggest, but it's by no means unassailable and it's users arent waiting on a cheque.
Regards,
-Steve Gray
-Cobalt Software
Re:Hard to argue (Score:5, Insightful)
Hmm... Yeah, no competition. I'm going to say it. "But they did it with YouTube, so no problem, right?"
YouTube IS comparable. DoubleClick is the biggest, just as YouTube was, and DC is NOT the only internet advertising out there. Here, lemme look through my adblock filters. These were all created BY ME, so they aren't just added randomly. I actually saw and was annoyed by these ad companies.
qksrv.net
atdmt.com
bns1.net
adquest.nl
atwola.com
tribalfusion.com
burstnet.com
falkag.net
viewpoint.com
imgehost.com
interclick.com
valueclick.com
maxserving.com
interpolis.com
belnk.com
zedo.com
advertserve.com
netshelter.net
intellitxt.com
contextweb.com
So tell me again how there's no competition in this market?
If there ever was... (Score:3, Insightful)
I trust Google about as much as I trust any other corp (not much at all) but to see Microsoft crying in its oatmeal is just poetic.
--
BMO
Tag (Score:1, Funny)
Please join me in tagging this fine article "hahahahaha".
Thanks,
-normuser
I have a very bad feeling about this (Score:5, Insightful)
(http://netapps.com.au/)
Doubleclick was worth more to google because they could multiply it against the adsense data they already own. Microsoft didn't have as much to gain.
Search is the new DNS. Anybody who owned and controlled all of DNS would control the internet. Most of the search market is controlled by google.
Google is only limited in size by the fact that they are an internet company, and the internet is finite. But if they wind up owning much of the internet its not going to be good for the rest of us.
I would love to be able to look forward 10 years and see exactly where this is heading. The don't be evil bit may just be ironic by then.
Re:I have a very bad feeling about this (Score:5, Insightful)
Is it really? According to Alexa, the top three websites in the world are, in order, 1) Yahoo, 2) msn and 3) Google. Maybe all the people who visit the former two do so for the news, or the groups, or the mail, but I'm not sure your hypothesis is automatically valid. Google sure seems to be the search engine of choice among geeks, but what about Joe Random and Suzie Sixpack? I don't think you can just extrapolate without doing any actual research here.
Wow, talk about ominous gloom-and-doom prophecies. I'd love to be able to look forward ten years to see where everything's heading, too, but neither of us can. I think the term "FUD" is quite appropriate here: what you're trying to create is fear, uncertainty, and doubt in the absence of any actual arguments.
Oh yeah, and since I just read your comment again, let me give another example:
I'm sorry, but that's FUD, too, although some rather underhanded one. The reason is simple: while the question "how much have they changed Linux" is a valid one, your second question and the answer you give to that not only already implies that the answer to the first one is "a lot" but also implies that others would not only benefit from those alleged patches but also that Google is holding them back for the sole purpose of not contributing back to the community - being evil, in essence.
And while Google's contributions to the kernel are indeed much smaller than those made by other companies, that's still just FUD until you actually come up with some solid evidence to back up your claims. But then, the fact that you don't actually go ahead and *openly* accuse Google of doing anything unethical is probably evidence that you do not, in fact, have any.
LWN.net knows (Score:4, Interesting)
(http://www.postnewspapers.com.au/ | Last Journal: Saturday August 03 2002, @01:00AM)
Google submits a significant number of changes to the mainstream Linux tree, as shown by (among other things) this recent lwn.net article [lwn.net]. For 2.6.20 they landed up rougly between Intel and HP ... both of whom have much more reason to be working heavily on the kernel, especially on the server end of the market.
Of course, there's no way of knowing if they maintain whole new optimised subarches, special file system drivers, etc in-house... but I suspect that anything they do keep private is mostly not released because it won't be very useful outside Google. Perhaps they're limiting access to things that'd only be useful to their direct competition in immense data warehouses - but y'know what, I don't care myself. I wouldn't be surprised if the kernel folks would reject any excessively specialised or over-complex changes anyway.
That said, as you pointed out little of what they do is releases as OS. More than most companies (at some) - including some nice search and data handling tech and some handy libraries - but hardly the crown jewels. I for one do not find this overly troubling.
I do, however, share your spine-crawling feelings with regards to the DoubleClick association. I've never been fond of DoubleClick at the best of times, and don't like the thought of their data being combined with Google's.
Horrible premonition (Score:1, Interesting)
$3.1B in gif ads? (Score:1)
Re:$3.1B in gif ads? (Score:4, Insightful)
(http://www.uberm00.net/ | Last Journal: Monday January 19 2004, @09:27PM)
Obligatory reality check regarding Google (Score:4, Insightful)
(http://sanghahost.com/ | Last Journal: Wednesday March 23 2005, @08:47AM)
Making money for their stockholders.
There's a fluffy bunny love for Google that everyone has but they may as well change their motto from "Do no evil" to "We do less evil than everyone else". A monopolist Google is no better than Microsoft. I'm not a fan of Microsoft, but giving too much control to any company, much less a publicly traded one, is a horrific idea.
Google is going to do what is best in their corporate interest.
Surprised? Don't be. It's business
The cynical position is usually right. (Score:5, Interesting)
(http://kamthaka.blogspot.com/ | Last Journal: Wednesday March 30 2005, @03:18PM)
We should be clear on one thing: There's nothing wrong with getting a monopoly by outcompeting or outsmarting others.
What's bad is using your monopoly position to deny other vendors access to the market. This means not only refraining from things that only a monopolist can do, but refraining from doing things that have uniquely anticompetitive effects when done by a monopolist. The fundamental axiom is that competition is good.
Google may be a monopolist as far as desktop search is concerned; if so it's probably the most unstable monopoly in history, thanks to net neutrality. We could all simply switch to yahoo tomorrow if we wanted to. The greatest danger relating to Google is in their service APIs, in which they could potentially induce developers to build applications on top of Google services, then crush the developers by the user of secret extensions. But they have shown no sign of doing that yet, because for the time being most of the innovation around Google APIs is coming from Google.
As odd as it sounds, companies have character, like people have character. Some companies (e.g. Lotus) never seem to be able to come up with a decent user interface, whereas surely all they need to do is hire some HCI experts early in the development cycle. Microsoft got where it was by cunning and aggressive competition. Nobody begrudges the huge windfall they got by snookering IBM over PC-DOS. They saw the potential and were looking farther down the road than IBM. But when they used their power to punish distributors who distributed competitor's products, they were doing something illegal and they knew it. The temptation is stronger for them because of the company's aggressive, strategic character.
Google is a company with a fundamentally different character. They are much more innovation driven than MS, which is much more focused on reacting to what the competition is doing. The only way to survive in a MS dominated marketplace is continual but disciplined innovation. The problem with companies that tried to compete with Microsoft is that they tried to compete with Microsoft. It's critical not just to think outside the box, but stay far from the box as possible, because MS owns the box.
Microsoft has forced the industry into a post-postmodernist style of competition. The postmodern strategy exploits niches that are social constructs of the vendor community. The post-postmodern strategy is to fulfill customer needs more effectively. It's back to basics, with a twist; you still have to look at what the competition is doing, but instead of conforming to that, you have to harmonize but not conform. Google builds its services on top of standards, but it builds them with an unique Google style and feel.
This switch in competition style is why we see so much more major vendor support for open source. Not that putting your thumb in the competition's eye isn't desirable anymore, but it's lower on the chain of values. In an industry dominated by one vendor, there can only be one winner at that game. So cooperation via open source becomes a possibility. Google is not a major player in open source, but the reason they often get lumped in with vendors who are is that they share common characteristics of having a longer term, customer centered strategy.
Bang goes the hypocrisy meter. (Score:3, Funny)
(Last Journal: Sunday November 05 2006, @05:31AM)
-jcr
How big is this market anyways? (Score:5, Interesting)
(http://lunaticthought.blogspot.com/ | Last Journal: Wednesday March 07 2007, @06:16AM)
So how big could Google's ARPU grow? In a country like The Netherlands 5.7 billion a year is spent on advertising to about 7 million households. This makes 67/household/month (and this number isn't growing too much) This is the total advertising expenditure on the national market and includes all major media: Newspapers, television, direct mail, cinema, magazines, billboards, internet etc etc etc. If Google can get part of that on a global scale, it amounts to a major amount of money. But now look at it from ARPU point of view. It would be hard for Google to get more then 10-15% of this market space ($6-$10/household/month) because they would have to replace all the existing ways of doing advertising and these are still powerful and sustain many content business models)
If a telco can his hands on google's revenues, they might be able to knock a few dollars of the price of a broadband connection. But $6-$10 isn't going to pay for the line and the costly upgrades. Just go and look up the financial information of telco's to see how big they are and how much money they spend on a yearly basis. Google is dwarfed by that. (Broadband reports said that telco's would spend $41 billion on network upgrades just this year, Google made only $10 billion last year) Odlyzko was right when he said: "Content isn't King" and we can add to that "Advertising will never be king".
So when AT&T says that Google is making money over their networks. We are talking about change compared to what AT&T is charging its customers.
Will Google get a dominant position? Only if they offer content providers the most money for showing a banner and advertisers the greatest amount of clickthroughs. That is why Microsoft and Yahoo are loosing out. The offer less adviews per day, that generate less clickthroughs per thousand adviews and pay less per click and offer advertisers less conversions. Why would you use them? Nobody in the equation is getting better by using Microsoft and Yahoo not the content provider and not the advertiser.
Now lets hope Google pays some attention to my pitch for Adsense for Charity [blogspot.com]. The idea is that anyone using Adsense can designate a percentage of their Adsense revenues for good causes or open source projects. Even if we are only talking about a very small percentage of Adsense users doing this, we still would be talking about millions of dollars per year) So please help out in spreading this idea, by linking to it or spreading it onwards.
true, true, but (Score:2, Interesting)
Sure, Google conspiracy theories may be a bit of an exaggeration, but I think few people would disagree that an internet largely dominated by Google and Google-backed products, generating more Google revenue (positive feedback, anyone?) would entail the typical monopoly shortcomings (less innovation once the market is consolidated, arbitrariness, a bigger buffer zone for failed services, etc.). Right now I can't help but feel that Google is almost administering a utility, like water or electricity. Half of what I do online is powered (or directly coded) by Google -- ensuring a major share of the advertising revenue wouldn't be so different to ensuring they get most of their rightful toll/tax money for providing those basic services. Sure, there's nothing wrong with these services so far, but do we really want one guy centralizing all the cool net stuff? I for one, have to hand this one to our traditional Microsoft overlords.
maket leader, yes, monopoly, no (Score:1)
potkettleblack is right... (Score:2)
Could it not be argued this way? (Score:5, Interesting)
I do agree that Google isn't necessarily the "sweet-faced cherub" in all of this, but from my own personal perspective as a general computer geek who uses non-Microsoft products (Linux and Open Source) more than Microsoft ones, so far Google have given me free of charge a good search engine with minimal advertising, an email system with almost 3 GB of storage space that (unlike Hotmail) is pretty good at catching spam and doesn't keep emailing me with useless adverts, the very useful Google Earth tool and "Docs and Spreadsheets" which I have found very useful for collaboration and for converting Word docs (albeit simple ones) to PDF. Plus I've not even looked at all the other Google services that I could subscribe to.
I do accept that MS does give quite a bit away to VB/DotNET/Whatever developers but for me, as an occasional coder in Perl, Python, shell scripts and a little C, there's nothing of any use to me that MS gives away.
So from my own selfish viewpoint, I'd rather Google was left to get on with it and MS kept their hypocritical noses out of it - and if Google does ever start pulling their monopolistic weight, I'll worry about it then.
scary cookies (Score:5, Insightful)
(http://www.theweddingcouple.com/)
That's the scariest part of the article... that a publication like the NY Times still hasn't figured out what a cookie is, or worse, has but yet misrepresents it to scare people over to their POV.
Just wondering (Score:3, Insightful)
I wanted MS to buy DoubleClick (Score:5, Interesting)
(Last Journal: Monday February 12 2007, @06:09AM)
Oh well, I can dream can't I?
I don't know what's funnier.... (Score:2)
I mean really, couldn't they at least rely on a more classy monopoly like DeBeers? Or am I missing it and they want their complaint to be made by companies that have been sanctioned themselves for violations of the anti-trust laws?
Can't be all bad (Score:2, Offtopic)
Too... much... irony... (Score:2)
(http://ubersoft.net)
with...
Bwooo hoooooo uhuhuhuhu huuu uhuhu whoooo (Score:2)
(http://www.webgeekworld.com/ | Last Journal: Thursday April 27 2006, @07:47AM)
antitrust was not the littlest of concerns for microsoft while it was stamping on the competition back in 90s.
see, that was what went around, but this, THIS is what comes around. (from scrubs)
Advertising Monopoly? (Score:3, Insightful)
(http://www.repcentral.com/)
Ads aren't like fuel oil, precious metals, telephone communication,
business computers or operating systems. A customer's lack of choice
in consuming advertisements means less sales for the advertiser.
The advertiser would then be unwise to continue allocating money towards
a loosing advertising channel and the problem would correct itself.
It's hard enough to imagine a monopoly on search with 3 giant companies in
the market but a monopoly on advertising is just a silly concept to me.
If it meant that much to them (Score:1)
Double-click Windows Integration (Score:1)
(Last Journal: Monday April 16 2007, @07:35AM)
Wait, how exactly does this hurt consumers? (Score:1)
(http://www.broofa.com/)
Now if they decided to buy the AdBlock plugin for Firefox, then I'd be worried.
Let me get this straight (Score:1)
(http://nevali.net/)
Riiight.
Whining (Score:2)
One... Two... (Score:2)
(http://www.skia.net/)
Wait. That's Microsoft, AT&T, Yahoo... one, two, three -- and others!
Sounds like there's plenty of competition in this space.
Call me crazy... (Score:1)
(http://mdm-adph.blogspot.com/)
sour grapes .. (Score:2)
'Online advertising firm DoubleClick Inc. is exploring a sale and is in talks [reuters.com] with Microsoft Corp'
I am sure they are sour [bartleby.com]
Sigh... (Score:1)
(http://giantpachinkomachineofdoom.com/)
That is all. (God I'm lazy.)
intuition tingling (Score:1)