Antitrust and privacy in Microsoft/Yahoo

[David Farber <dave () farber net>]

________________________________________
From: Peter Swire [peter () peterswire net]
Sent: Friday, February 01, 2008 1:46 PM
To: David Farber
Subject: Antitrust and privacy in Microsoft/Yahoo

Dave:

Of interest, quite possibly, for your list:  http://www.americanprogress.org/issues/2008/02/yahoo_microsoft.html.

“Privacy issues will be central to the forthcoming antitrust merger review of today’s $44.6 billion bid by Microsoft 
Corp. for Yahoo Inc. U.S. antitrust authorities have already studied these privacy issues in connection with the 
proposed merger of Google Inc.  and DoubleClick, which is still under review in Europe. U.S. and European authorities 
will almost certainly investigate the privacy aspects of today’s proposed merger more fully than any other merger in 
history.

<snip>

Although more issues may emerge over time, the market for search looks like it will be the focus of privacy issues of 
the proposed Microsoft/Yahoo merger. The two companies are probably No. 2 and No. 3, respectively, in the enormous 
global market for search. The companies will likely argue that their merger will make them a more effective competitor 
against market leader Google.

The privacy concern is that the merger could reduce competition for privacy in search. We have seen major privacy 
initiatives in search engines in the past year. Microsoft announced new privacy protections last fall. Google did the 
same during the merger discussions. And the fifth-largest search company, Ask.com, recently rolled out its “AskEraser” 
anonymized search.

Antitrust authorities thus need to investigate the effects on competition for search privacy from the proposed 
Microsoft/Yahoo merger. Based on the Commissioners’ statements in the Google decision, it seems highly likely that the 
FTC would conduct that investigation if it reviews this merger.

<snip>

Best,

Peter


Prof. Peter P. Swire
C. William O'Neil Professor of Law
   Moritz College of Law
   The Ohio State University
Senior Fellow, Center for American Progress
(240) 994-4142, www.peterswire.net

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