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.
Reader Comments
Right. Google has never complained to Mozilla that Firefox defaults to Google (and neither has Microsoft, for that matter). Obviously, Google's statement of "We don't think it's right for Microsoft to just set the default to MSN. We believe users should choose" is a load of you-know-what. These companies that view themselves as underdogs feel it's ok for them to gang up and promote each other, but not ok for Microsoft to promote itself.
jnisbet -May 01, 2006
When I tested IE7 Beta 2, I set up Google's home page to be on one of the opening tabs. Google's page evidently tested for IE7 and had a graphic that pointed DIRECTLY at the search box and offered to change the search's default to Google.
Sounds like Google had the perfect competitive solution to its fabricated problem.
All tech companies (Microsoft, Google, Real, etc.) should quit whining!
mwrisner -May 01, 2006
In the nytimes article, a google spokesperson says it's going to be difficult to change the default search engine to google. Surely, they can come up with a better argument than that. Changing the default search engine is just as easy or as hard as it is in FF.
shark47 -May 01, 2006
Google is spaming my searchpage with firefox adds. it is turning into another yahoo. One of the reasons I used it was because it used to be clean and search oriented. Now it looks like a punk open source apologetics company trying to ram everything down people's throat. Not to say MS is different but google should be. or at least they claimed to be. but the truth is, they aren't. down with google.
guruguru -May 01, 2006
I can understand Google complaining because IE has such a huge market share. However, if IE changes to allow the user to initially select the search engine, then so should firefox. Fair is fair, right?
anonymous -May 01, 2006
FYI, everytime I post a comment I get a message box in IE that says it aborted and then I get page cannot be displayed. I wonder what funky code is screwing up IE6.
anonymous -May 01, 2006
"Surely, they can come up with a better argument than that."
Better, perhaps, but no less true.
Paul writes: "The Firefox version Google points to, naturally, includes an integrated Google toolbar."
Oh, Paul, you're being disingenuous again. If you were really an objective reporter rather than a Microsoft shill, you'd have written, "The Firefox version Google points to includes a customizable integrated toolbar with Google as the default option." Now THAT would have been some refreshing honesty on your part!
"These companies that view themselves as underdogs feel it's ok for them to gang up and promote each other, but not ok for Microsoft to promote itself."
Two words: Convicted Monopolist
What y'all keep forgetting is that as a company convicted of using its monopoly status to stifle competition, Microsoft must be very careful here, and, as Paul correctly points out, "Microsoft should be watched carefully". Within a few months of its introduction, IE7 will probably be one of the dominant--if not THE dominant--browsers on the planet. If (and note, sharky and others, I said IF) Microsoft starts making it difficult or impossible for others to compete, they should be stomped on. HARD.
But hey, this thing's still in Beta, right? Plenty of time for MS to play nice with others. Like they always do!
lotsamystuff -May 01, 2006
Lotsamystuff, have you used IE 7 Beta 2? Have you visited the IE team's blog (blogs.msdn.com/ie)? Have you read Paul's reviews on IE 7? If so, you should have noted that IE's integrated search bar makes it very EASY to change search providers; when I visit Google's homepage, Windows Live homepage, the arrow beside the "Search" button lights up, and if I click it, it displays a drop-down menu with an option to "Add this Search provider" and "Make this provider the default." IT DOES "play nice with others"!
NateB2 -May 01, 2006
"But hey, this thing's still in Beta, right? Plenty of time for MS to play nice with others. Like they always do!"
Yup. They should play nice with Google. After all, Google is the epitome of all that's nice in this world. MS should make google search the default search engine in IE7. They should make google.com (or) getfirefox.com the default homepage. And, of course, MS should pay google royalties for using their search engine in IE. Now that would be fair. After all, and you never tire of this, MS is a "convicted monopolist".
shark47 -May 01, 2006
"If Microsoft starts making it difficult or impossible for others to compete, they should be stomped on. HARD."
That rule applies to any company, whether a "convicted monopolist" or not. If Google does the same thing, they should be punished too and they will.
shark47 -May 01, 2006
This entire fuss is based on fiction:
Because MSN is NOT the default search engine in IE7!
By default, IE7 inherits its default search engine from IE6. For most users, especially those who have previously used the Google toolbar in IE6, the default search engine for IE7 is therefore GOOGLE! IE7 respects previous user preference. Firefox and Opera on the other hand, just use Google without asking.
If you buy a Vista PC from an OEM then the OEM (not microsoft) chooses which search provider is the default.
The ONLY situation where the IE7 default search provider is MSN, is if you bought Vista at retail. In this case it takes a whole TWO MOUSE CLICKS to switch to Google.
atkoj@yahoo.com -May 01, 2006
"If (and note, sharky and others, I said IF) Microsoft starts making it difficult or impossible for others to compete, they should be stomped on. HARD."
Hmm, sounds a little like a company with a fruit logo. Can anyone say iTumes and iPod?
bugmenot3 -May 01, 2006
"The Firefox version Google points to includes a customizable integrated toolbar with Google as the default option."
Is the "customizable integrated toolbar" not made by Google? Is it not known as the "Google Toolbar"? How is what Paul wrote not true?
And to anyone saying MSN isn't the default search in IE7, you can argue about that till you're blue in the face, but the fact of the matter is that on a fresh install of Vista or an upgrade from an uncustomised IE6 will lead to MSN being the default search. That makes it the default search engine. Which, as a lot of others have pointed out, *is easily changable*.
Benn21uk -May 01, 2006
Bugmenot3 -
I'm sure quite a few of us can say "ITumes and iPod."
I am NOT so sure that you realize why that would make us all sound like idiots.
Nothing like proofreading your comments before posting. (Especially when the error is in your punchline.)
bdkjones -May 01, 2006
"Lotsamystuff, have you used IE 7 Beta 2? Have you visited the IE team's blog (blogs.msdn.com/ie)? Have you read Paul's reviews on IE 7? "
Yes, yes, and yes.
" all, and you never tire of this, MS is a "convicted monopolist"."
Sharky, by law, the rules are different for Microsoft. They put themselves in that situation, and they have to play by those rules. Them's the facts, Jack! :-)
"mm, sounds a little like a company with a fruit logo. Can anyone say iTumes [sic] and iPod?"
Last I checked, Apple hadn't been convicted of abusing its monopoly power to crush competitors. If and when that happens, they will have to adjust their business practices accordingly. Besides...there's plenty of competition for 99-cent downloads and alternatives to the iPod. It's not Apple's fault that people generally find those alternatives to suck.
"a fresh install of Vista or an upgrade from an uncustomised IE6 will lead to MSN being the default search. That makes it the default search engine."
Finally, a voice of sanity!
"Which, as a lot of others have pointed out, *is easily changable*."
Agreed. We'll see what happens when the final version comes out. Should be interesting. I really think MS will do the right thing here and not lock it down or make it tough for "Aunt Betty" to change, but like Paul said, this company bears watching.
lotsamystuff -May 01, 2006
"Hmm, sounds a little like a company with a fruit logo. Can anyone say iTumes and iPod?"
Wrong. The iPod was always a mac only hardware device, and iTunes was only for OS X all the way up to version 4.0. Just in the past few years has it even been available for the PC market. Competitors like Sony and Microsoft have always had their chance to dominate that market, even as far back as the early 90's with MP3 players when Napster was huge, as they've always had more customers to sell to while Apple's small iPod and iTunes market was only for macs. People chose iPods and iTunes as it became available for PC. Apple didn't set the page for the MP3 market by any means, they just got very popular very fast and took over with unparalelled numbers. You're delusional if you think that Apple, the same company which so many on here diss as being so small and nimble, bullied their way on top.
DerekTraver -May 01, 2006
Allow me to further elaborate on the failures of company's like Sony and Microsoft in the MP3 player and online digital music stores. They never thought the market was going to sell in the tens of millions of units every quarter... Apple made the MP3 market boom, Apple turned that market into the next Sony Discman/portable CD player market. If Sony had realized what Apple was capable of by opening the device up to the PC market say, in the year 1999, they would have put a lot more money and development into it.
Now that Apple took the market and made it as popular as DVD's, (sarc) where as three or four years ago it was no where near as big of a deal, everybody's got their two cents on the evil monopoly Apple created. I disagree, I say they beat their competitors fair is square in a market that wasn't anywhere near as popular until Apple made it so. Before the iPod domination of MP3 players, people downloaded MP3's and just burned them onto CD's and played them in CD players. And that my friends, is the truth. To me, competitors just like Apple themselves should have realized what was capable of being accomplished in that market before Apple passed them by.
DerekTraver -May 01, 2006
Maybe big-bad MS will use some of their cash-horde to cook-up deals with every vendor (Dell, HP, Adobe, etc) and bundle their search bar to upset stoopid Booble.
I mean if the competition goes running to the DOJ & EU everytime they add value to their own software, then maybe the Booble desktop will win the in marketplace.
Yeah right...
MS is evil either way with you clowns...
KingBuzzo -May 01, 2006
"Last I checked, Apple hadn't been convicted of abusing its monopoly power to crush competitors."
Hmmm... I seem to remember something on Digg about a month back. (ref: http://digg.com/apple/iPod_iTunes_=_Monopoly_Suit ) Read a few other sites outside of WinInfo there lotsamystuff before making a few comments. Might save ya some face value.
And yes, Google is just as bad, even WITH their little slogan of "Do no evil". They are beginning to become the internet monopoly that will do anything to crush the competition. And if Google whines and complains that IE7 is monopolizing the MSN category, what are they SUPPOSED to do? Brag about Yahoo!'s search? If IE7 is too big of a lock-in, why does Google.com flash an arrow up towards the search bar already?
My opinion: suck it up and stop milking the Microsoft cash cow. It makes you look retarded and begging for the limelight.
freakyfelt -May 01, 2006
It is too easy to change the default search engine it IE7-why are they whining when it is so easy to do? They are already included in the list of search engines that you can use in IE7. I am growing tired of all of this Google bashing IE7 without justification. I think it is funny that the group offering a dollar to switch to Firefox would be considered terrorists in England for that action.
daddy3 -May 01, 2006
"Last I checked, Apple hadn't been convicted of abusing its monopoly power to crush competitors."
The conviction comes after the abuse. Microsoft was convicted in the 2000 timeframe for abuses during the 90's. While the "abuses" were taking place, they hadn't yet been branded a monopoly, let alone convicted by a court of law. So, while Apple might not yet have been branded/convicted, they may be breaking the law. (How does one know when one is "over the line?" Good question. The antitrust laws are very muddy and have no clear answer.)
"Besides...there's plenty of competition for 99-cent downloads and alternatives to the iPod. It's not Apple's fault that people generally find those alternatives to suck."
Likewise, there's plenty of competition for Windows--Mac OS for one. There's also numerous Linux distributions, but it isn't MS's fault that people generally find them to suck.
PatriotB6007 -May 01, 2006
"Sharky, by law, the rules are different for Microsoft. They put themselves in that situation, and they have to play by those rules. "
Ummm, no! Ideally, the punishment for a repeat offender should be different but the rules should remain the same.
shark47 -May 01, 2006
'Two words: Convicted Monopolist'
By your logic Intel should be promoting AMD Chips in Japan as they have been found to have violated antitrust laws there. Don't see that happening - do you?
Its so easy to change the default search engine in ie7.
Google hasn't a prayer on this one. But hey, its seems to be the way it goes now. If you cannot compete then take 'em to court.
And don't spout convicted monopolist here Lotsa, I'm not just talking about MS here. Its happening all over the place. RIM v Blackberry for instance.
alanm999 -May 02, 2006
"Google hasn't a prayer on this one. But hey, its seems to be the way it goes now. If you cannot compete then take 'em to court."
I agree. Google's acting like a petulant little child. BUT, when you're dealing with a corporate entity like Microsoft, you always have to watch your back for the incoming knife.
lotsamystuff -May 02, 2006
But surely that is business.....
alanm999 -May 02, 2006
"Yes, yes, and yes."
Great! Now I can stop bugging you. :)
Microsoft has come a looong way from where it was in the 90's, with all that stuff about integrating IE with Windows Explorer.
Their new policy is most demonstrated in IE 7 and even Vista. Almost all the little annoyances are gone in Vista - Windows Messenger is not installed (finally!) and therefore gives no popups. You are never prompted to "add a .NET passport to you Windows account", even the popups for the wireless network section are gone. No more "Wireless Networks are in range", or "You are successfully connected to ------", or "Windows cannot connect to any of your preferred wireless networks", or "You have limited access to -------- network...".
Their new policy of the user being in control seems to have yielded welcome results. I do agree that they must be watched and told if they do something wrong.
NateB2 -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.
bonch -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.
dugbug -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?
shark47 -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.
sticknick -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.
Free CDs Offer Fundamental Content for IT Pros Are you up to speed on the latest technologies and solutions? Don't miss out on your chance to get up to speed quickly on fundamental, in-depth information on some of the hottest topics in our library of content.
Let Your Users Reset Their Own Passwords: Free Download Try a 30 day free trial of Desktop Authority Password Self-Service – it provides an easy-to-use, robust system for allowing users to reset their own forgotten passwords or locked accounts.
Get Windows IT Pro & Mark Minasi’s Favorite Power Tools Guide Order Windows IT Pro now and get "More of Mark Minasi's Favorite Power Tools"--a in-depth guide to the most useful Windows commands --FREE with your paid order! Subscribe today, and save 58% off the cover price!
Deep Dive into VMware vSphere, eLearning Series Join John Savill to explore the major functionality capabilities of the vSphere virtualization platform, including identification of the changes from ESX 3.5.