Today, Google has said that Microsoft’s possible acquisition of fellow Internet giant Yahoo for $45 billion, could, potentially be anti-competitive – the company’s Chief Legal Officer David Drummond seemed very concerned about the future of Yahoo! and far-reaching implications of the much-hyped deal in his blog post: “Microsoft’s hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another. It’s about preserving the underlying principles of the Internet: openness and innovation.”

He argued that, now with the possibility of Microsoft acquisition of Yahoo could make them even more dominant, saying that this deal can “allow Microsoft to extend unfair practices from browsers and operating systems to the Internet”. The software giant, however, countered back, rubbishing the claims that their acquisition of Yahoo is intended to create a monopoly, saying that, they would create more competition, in reference to Google’s 75% control of search revenues. Microsoft General Counsel Brad Smith had this to say: “The alternative scenarios only lead to less competition on the Internet,”. He also claimed that Microsoft “supports openness”.

In somewhat of a bizarre twist, sources within Yahoo are claiming that Yahoo want to partner up with Google, claiming that this would put off a hostile Microsoft takeover. It is said that Yahoo is looking to an alternative to Microsoft, considering the Microsoft offer as a threat of sorts, after the letter sent to Yahoo from Microsoft’s CEO, Steve Ballmer.