14 DAY TRIAL // Microsoft is pack leader in a new initiative designed to crowd the wolves of the online advertising industry to a potential Google slaughter. The Redmond company has hired PR agency Burson-Marsteller in order to lobby against the proposed $3.1 billion acquisition of DoubleClick by Google announced in April 2007. Commenting the move against the Mountain View search engine giant, Microsoft argued that the merger of the top two online advertising entities would lead to the creation of a market monopoly. David Rosenblatt, CEO of DoubleClick, counteracted and pointed out that the Redmond company was allowed to complete its $6 billion acquisition of aQuantive, although Microsoft has proven in the past that is no stranger to a position of monopoly.
Both Microsoft and Burson-Marsteller confirmed the birth of the Initiative for Competitive Online Practices, a strategy designed to attract and centralize companies that express concerns over Google's acquisition of DoubleClick. However, Microsoft denied that Burson-Marsteller is lobbying on its behalf, and stated that the initiative is designed to ensure a "Transparent and Competetive Internet." The Redmond company flat out accused Google that it is consolidating its dominant position in the online sector, while indicating no interest for end user privacy or for intellectual property rights.
"ICOMP is a joint initiative sponsored by Microsoft and Burson-Marsteller to highlight important principles in online services and begin important industry discussions around copyright, privacy, and competition. We are encouraged by the initial response and encourage visitors to inform others. We welcome all interested organisations. In the coming days and weeks, this website will be updated regularly. Please watch for additional information and opportunities to share your views and join the discussion," reads the welcoming message on the website of Initiative for Competitive Online Practices.
It seems that the tables have turned, and now the Redmond company is positioning itself as the good guy while Google is becoming... well, Microsoft, but the old and monopolist Microsoft. Burson-Marsteller is not the only company gathering support against the Google and DoubleClick marriage. Patton Boggs, an actual lobbying firm, was hired by Microsoft earlier this year in order to brake up Google and DoubleClick. The Mountain View search engine giant indicated that while the merger is investigated by the US federal trade commission, with the European Antitrust Commission also promising to look into the matter in the coming four months, it will remain a separate entity from DoubleClick.
Ironically, Microsoft was also interested in DoubleClick, and outbid Google from a financial perspective, just to have the Mountain View company outbid it in terms of brand and position on the online advertising market. Still, Microsoft emphasized that its own market domination with the Windows operating system was obtained naturally, and not through taking over the competition, a move that Google is making with DoubleClick. And in this context, the Redmond company already has the support of Internet advertising giants Yahoo and WPP.
"We take note of concerns recently submitted by European consumer organizations to European competition regulators regarding Google's proposed acquisition of DoubleClick, and its potentially far reaching effects. We believe that industry must be equally vigilant in preserving vibrant competition and protecting the interests of authors and publishers, advertisers, and consumers," Burson-Marsteller added on ICOMP.