According to a July 16 report by American media, senior Microsoft officials have made an official statement regarding the cooperation between Google and Yahoo in search advertising business. Before being questioned by the antitrust subgroups of the Senate Judiciary Committee and the House Judiciary Committee, Brad Smith, Senior Vice President and General Counsel of Microsoft Corporation, also questioned the legality of this deal. Mr. Smith emphasized to the media that this transaction could potentially cause significant harm to competition in online advertising and technological innovation.
Market experts believe that the search business is one of the Internet's entry points. If this deal is ultimately completed, it will allow Google to firmly control this entry point and monopolize the information resources flowing into it. Brad Smith, Senior Vice President and General Counsel of Microsoft Corporation, said: "In history, there has never been an advertising company dominating the market and controlling up to 90% of the advertising business on a single medium. Such an advertising giant like Google-Yahoo should not exist on the Internet." At the same time, Mr. Smith also questioned the economic purpose behind this deal. Yahoo! Will gain at least an additional $800 million from this deal, but that's just a small part. In the future, all companies will have to pay higher prices to advertise on Yahoo!, and the services they receive will be no different from today's ads. This will bring huge profits to Google-Yahoo's business.