A pro-competitive Microsoft

4 February 2008 By William Echikson

Expect US and EU regulators to take a tough look but clear the $45bn proposed acquisition. Regulators have long portrayed Microsoft as a bully. But now it looks more like a saviour, trying to preserve competition and keep Google from becoming the new Microsoft.

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Microsoft's $45bn bid for Yahoo will require approval from both European and US antitrust regulators, a process that Microsoft said it hopes to conclude by the end of the year.

Google came out against the deal on Sunday, contending that the MicrosoftYahoo combination would pose threats to competition. Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? asked David Drummond, Google's senior vice president and chief legal officer, writing on the company's blog.

Microsoft followed with a statement, arguing that the deal would actually improve competition. The combination of Microsoft and Yahoo will create a more competitive marketplace by establishing a compelling No. 2 competitor for Internet search and online advertising, the company's general counsel, Bradford L Smith, said in a statement.

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