Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, February 1, 2008

Initial Thoughts on Microsoft/Yahoo Potential Merger

Posted by D. Daniel Sokol

The EU essentially treats Microsoft as a regulated firm and continues to push against Microsoft with two new investigations.  In the US, just this week, Judge Kollar-Kotelly extended all the oversight provisions of the Microsoft consent decree until November 2009.  If Microsoft is as dominant as its critics claim, then why has it offered to acquire Yahoo in what seems to me to be a defensive move because of the threat of Google to Microsoft?  It goes to show that antitrust needs to proceed carefully against unilateral conduct in markets that change so quickly (is anyone having an IBM case tingle?).  The landscape of 10 years ago in which Microsoft was dominant looks quite different today.  On another note, what would we call the combined company- Microhoo or Yahoosoft?

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