FTC Should Keep Mitts Off Microsoft-Yahoo Acquisition

Washington, D.C., February 1, 2008— Microsoft announced today its offer to buy Yahoo! for $44 billion, a move that stands to benefit millions of consumers – unless the Federal Trade Commission interferes.

 

“Unfortunately for consumers, the FTC will face pressure by the same groups that lobbied against the proposed Google/DoubleClick merger,” said Cord Blomquist, CEI Technology Policy Analyst. “And again, many of the arguments won’t be about competition, but instead will focus on privacy concerns.

 

“With the Google/DoubleClick approval now serving as precedent, the FTC should be able to dismiss these arguments.  The FTC approval must make a decision based on competition, which this deal increases significantly.” Blomquist noted. “But, since that the deal is still pending in the EU and several groups are challenging the approval in the US , ‘Microhoo!’ may languish for a while.”

 

Among the likely benefits of a Microsoft acquisition of Yahoo! are: