3 Reasons Google Should Fear Microsoft-Yahoo Partnership

With the arrival of the Bing search engine and the Microsoft-Yahoo search partnership, it’s been a hectic summer for search — not that you’ll see market leader Google sweating.

With a united front building against its cash cow search business, Google is playing it cool.

Google CEO Eric Schmidt said back in June about Bing: “I don’t think Bing’s arrival has changed what we’re doing. We are about search, we’re about making things enormously successful, by virtue of innovation.” For the most part Google is ignoring Bing, at least publicly. Google has not made any outward strategic moves that imply worry about Bing or the Microsoft-Yahoo partnership, other than to state that it’s bad for innovation and competition.

Indeed, the Microsoft-Yahoo partnership will face the scrutiny of antitrust regulators and some experts question whether the partnership will be approved.

But if the partnership does pass legal muster, the search wizards in Mountain View will have a legitimate threat on deck. Microsoft has the money ($100 million is being spent on Bing marketing) and Yahoo has the users (98 million Yahoo Mail users in the United States, four times as many as Gmail). Both companies have the technology.

Google’s plan, according to an upcoming Time magazine feature story, is to keep on innovating in search and let Microsoft mass market the heck out of Bing. But here are three reasons why quietly innovating may not be enough to keep the tenacious Microhoo at bay.


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