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May 01, 2006 12:00 AM

Google Lashes Out at IE 7 Search Feature

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A month ago, Google approached the US Department of Justice (DOJ) and the European Union (EU) to complain about the Internet search feature in Microsoft's upcoming Internet Explorer (IE) 7 Web browser, which Google says unfairly promotes Microsoft's MSN Search service. The tactic, which might be described as tattling if both companies were three-year-old children, is debatable: Google is betting that antitrust regulators at the DOJ and EU will see parallels between IE 7's use of MSN and Microsoft's ignominious defeat of Netscape a decade ago. But Google is a much more powerful and cash-rich company than Netscape ever was. Where does one draw the line between competition and product bundling?

"The market favors open choice for search, and companies should compete for users based on the quality of their search services," says Google Vice President Marissa Mayer. "We don't think it's right for Microsoft to just set the default to MSN. We believe users should choose."

To date, neither the DOJ nor the EU has elected to pursue the case. And Microsoft argues, correctly, that the IE 7 search box--a tiny slice of onscreen real estate in the upper right corner of the browser window--is remarkably easy for consumers to configure for their favorite search engine. If people really do prefer Google, the argument goes, they'll have no problem changing IE 7 to use Google instead of MSN Search.

In my own tests of the Beta 2 version of the browser, I found this feature to be quite open to competitive search engines. Here's how I described this feature in my review of IE 7 Beta 2: "Microsoft even lets you easily change the default search engine to your favorite, including Google," I wrote. "And there's none of the stupidity you might suspect Microsoft of engaging in here at all. The company is even maintaining a Web site full of search engine providers so you can pick your favorite search engine easily and get on with life."

Microsoft's response to Google is priceless. The software giant says that IE 7 is designed to be pro-user, whether Google likes it or not. "Whatever behavior happened in the past, the guiding principle we had is that the user is in control," says Dean Hachamovitch, the general manager of the Internet Explorer team at Microsoft. And if you're still terrified that IE 7 will harm Google, consider these facts: Google is set as the default search engine in most rival browsers, including Mozilla Firefox. And Google recently promoted Firefox on its heavily trafficked--and market-leading--Web site. The Firefox version Google points to, naturally, includes an integrated Google toolbar.

As a powerful monopolist, Microsoft should be watched carefully. But many of its competitors have chosen of late to compete in the courts rather than in the open market, perhaps because they feel that the software giant's legal woes make it more vulnerable. Google's allegation is frivolous. It's the dominant market leader in Internet search today and likely will be for some time to come. Google and Microsoft should be allowed to duke it out in traditional competitive ways for market share, eyeballs, and ad dollars.

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Comments
  • Christopher
    6 years ago
    May 02, 2006

    Heck, I've been a fan of A9.com, and I easily set that up as my default search provider in IE7. Nice thing about A9, they give you (Pi/2)% discount at Amazon for using their search. Not bad to get paid to use a search provider.

    Frankly I haven't a clue why Google has a rabid following. It really blows my mind. Their P/E ratio is still through the roof -- they would need to make 10B/year in profit to have a healthy P/E and justify their current share price.

    Services wise, they don't offer nearly as much as Yahoo. Yahoo is a much better fleshed-out service. What blows my mind is that Google is a 100 billion dollar company which is perpetually under construction. It seems every service is labeled as "beta"; consequentially the investors have their money invested in something which is being built on "spec."

    Google does have the biggest ad network, bar none. Virtually all of their revenue seems to stem from that ad network, which is impressive in its own right.

    As an investor I'd *really* want some income-source diversification. To continue the comparison with Yahoo, they are earning money on everything from travel, mortgages, financial information services, personal ads, web hosting, domain sales, etc. It's startling the volume of what they offer compared to any other online firm.

    Realistically if it's a viable source of content, Yahoo has already managed to extract a revenue stream from it. Given that comparison, Yahoo needs a killer ad-network to trump Google, whereas Google is still missing everything else.

    Google might be a fine search engine, but I'm thinking that all their shareholders really need to get some perspective. In defense of Google it is a profitable company, but investors are being a bit irrational. At some point the share price will fall in line with earnings, and that won't exactly be an envious position for current shareholders. Frankly I think Google should pull an AOL/TW and just buy Yahoo.

  • Stick
    6 years ago
    May 02, 2006

    Google should stfu.

    Look at the list on the page that dugbug posted...

    Froogle - beta
    Google Search
    Google Search UK
    Google Image Search
    Google Video Search

    MS only added 3 (regular search, images and UK).

    What I find interesting is that there is an option for Astalavisa ...

    Anyway - Everyone uses Google. Everyone wants to use Google and everyone WILL use Google. I find it exceedingly funny is that MS is promoting the use of THEIR products. WHOA! HOLD ON THERE!

    Personlly, I think MS intergrating IE into Windows explorer was an awesome move. It made the OS so much more easy to navigate than the old Win95 explorer (having to open a gajillion windows to find a picture). Was this unfair to the competetition? The court says so, so it must be because justice is blind, no?

    But come on. They didn't lock up the OS to refuse to accept other browsers (I used Opera until IE 5.5 came out), nor have they now locked up IE7 to refuse to use anything other than MSN Search.

    This is exactly like the EU whining and complaining about how bundling WMP with Vista is unfair to the competitors. Really? Let's see now:

    Real Player = crap
    WinAmp = crap (AOL busts everything they buy)
    QuckTime = ... well, I wouldn't call it crap but I don't like it
    iTunes = popular with Windows now (and the only people I know who use it have an iPod). And this comes bundled with OSX (but that a whole other flame war)

    WMP 10 is decent and from what I see of 11 it's going to be even better. People are not going to use it though just because MS puts it in the OS. They're going to install whatever it is they use now and go on with their lives. Hell, most people don't know WMP even exists until you show them.

    Same with the IE7 search feature.

    With all this anti-trust BS flying around it'll be a wonder if they can actually get Vista released in 2007.

    Of course, they won't and everyone will be on them for that.

  • Shravan
    6 years ago
    May 02, 2006

    "Google says they fully support Firefox also having an initial setup dialog asking for your favored search engine."

    I don't think so. Is that why google touts firefox with google toolbar on its webpage? And seriously, why should Microsoft have google as the default search engine on its browser when it has aits own search engine?

  • dugbug
    6 years ago
    May 02, 2006

    bonch,

    Its still pointless. The search engine is so easily changed it is a preposterous claim.

    Here are some screenshots to demonstrate what we are talking about:
    http://tredosoft.com/internet_explorer_7_search_providers

    Just as google's toolbar uses google by default, IE7 has EVERY RIGHT to use their own search technology. Even though they do not... the OEM can preconfigure a search default.

  • Preston
    6 years ago
    May 02, 2006

    "Right. Google has never complained to Mozilla that Firefox defaults to Google (and neither has Microsoft, for that matter)."

    Firefox isn't a monopoly, and Google says they fully support Firefox also having an initial setup dialog asking for your favored search engine.

    Next.

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