Google/Microsoft: Careful What You Whine For

One of many smart comments/links to the last post re MSN's deterioration concerned the default search setting for the forthcoming IE 7.0.  As the NYT details, Microsoft is embedding a search window in the browser header of 7.0 with MSN as the default search engine (or "Live" or whatever the Microsoft engine is or will be).  Google, meanwhile, is complaining that this is an abuse of power, that Microsoft should be forced to make every new PC user walk through set-up screens that choose the default.  Commentators are using the tiff as a way to suggest that Google is in trouble, Microsoft is about to pull a Microsoft (come from behind and win the web game), etc.

Thoughts:

• First, hats off to Google for keeping a straight face while complaining about this.  Microsoft's monopolistic bullying, apparently, theatens to boost MSNs 11% share of search while chipping away at Google's 50%-share--so it's clearly worth tax-payer dollars to get the regulators involved.  Also, the Google toolbar that Google smuggled onto my PC in a "Java update" package last week has not only embedded a Google search window in my (Microsoft) browser but made it look like the browser was made by Google (the word Microsoft is nowhere to be seen). 
• Second, hats off to Google for realizing that, although the idea that Microsoft's plan is somehow monopolistic bullying is ridiculous, the idea that regulators, especially the EU, might not see it that way is not.  Regulators usually fight the last war, and if Google succeeds in getting them up in arms about this non-event in a new world in which Microsoft is the farthest thing from a monopolist, more power to Google.
• Third, according to the NYT, Microsoft is not hard-coding MSN into every browser but, instead, giving PC makers the ability to charge search providers a fee to be the default search engine.  If Google wants that slot, in other words, it doesn't need to complain about it--it can just use a tiny fraction of its gigantic cash pile to pony up. 
• Fourth, users can change the pre-set default easily, just as they can with the IE home page (which also comes set to MSN, and which hasn't exactly stifled Google's growth).  That many don't hasn't helped Microsoft do any better in the web business than a distant and nearly irrelevant third.
• Fifth, I don't have the numbers to back it up, but Google's end-of-the-world-as-we-know-it estimate in the NYT that 30%-50% of users will use the embedded search window strikes me as absurdly high. 
• Sixth, even if Microsoft does what it plans to do, I don't see this as a major game-changer, at least not re Google.  For most people, Google equals search, and no window is going to change that (unless it's Google's).  I get the sense that many of Yahoo!'s searches, however, are driven by convenience--MyYahoo users using the closest box--and if an embedded window in IE is even more convenient, then that could be bad news for Yahoo.

Bottom line, Google's public complaining about such a small issue seems to me evidence that its sense of itself (quirky, aggressive start-up) still hasn't quite caught up with its reality (global behemoth).  If so, of course, this is a DNA trait it very much shares with the even more dominant global behemoth to the north.

Comments

[King Troll]

You guys are some really smart people. Interesting thoughts on this board. It would be cool to add a profile feature so we can get a feel of the different backgrounds on here.

My other favorite board is mma.tv

Fighting and Business bros. That's life.

[Walter]

That's the beauty of this blog contrasting MSFT to GOOG. Personal agendas rise to the surface exposing clouded objective analysis.

The best analogy I've heard to claims of MSFT monopoly is when you buy a Ford you don't get a choice of tire manufacturers either.
As many have noted here, the browser, the operating system, and software you use is your choice. If you don't like the tires MSFT puts on its vehicles don't buy the vehicle. And if you do buy it, it costs you exactly $0 to swap the MSFT tires out. How any rational person could consider that monopolistic is mind boggling.

[Neal Lachman]

Another blow to GOOG:

Amazon switches to Microsoft from Google

Microsoft Corp. scored an important win against rival Google Inc. over the weekend, as Amazon.com began using its technology to power the Internet retailer’s A9 search unit.

http://news.ft.com/cms/s/7002eeda-d995-11da-8b06-0000779e2340.html

[Still Inside]

Somebody should peel off the first layer of the Amazon deal. Why did they do it? If the answer is, "they though LiveSearch was really kewl" then I'm selling my AMZN right now. I doubt it was though. There's gotta be some quid pro quo somewhere. Where is it?

SI

[John Shiznit]

it could be as simple as they dont want to give the money to goog because they see them as a bigger threat in e - commerce.

[an_observer]

Neal, Did you actually know what that Amazon deal is about? Or, this is just a habit of yours (like Henry's), punch Google whenever possible. At least Henry got a personal reason, what's yours? Take it easy, my friend.

Oh, if you like search box in IE7 beta, you're going to love Firefox's mouse search and "CTLR + F". Those two features actually grows on you. Search box's importance fades away once a toolbar is installed.

[Neal Lachman]

observer,

The reasons were not publically announced, but there was another commentor (John) on a previous post (MSN: another quarter...) who had a good point: the CEO of A9.com was hired by Google, which may have created some animosity.

But, I think there were many business reasons to do so. Amazon has been in the industry as one of the first, it knows how it is to be a high-flying newcomer, just what Google is now. But Amazon has a physical off-line backoffice business, which is more long-term than something virtual like selling air (advertisements). I think Amazon has made a very strategic and deliberate choice. They want to side with the biggest boy and not just the new bully.

There are more benefits to amazon to form a strategically alliance with MSFFT than with Google, which is a one-trick pony desperately and unsuccessfully learning other tricks.

[FISTING]

Waxworm Redemption (or should that be Salvation?)

[SEX-DVD]

ÓYou had your last chance girl. Now you will get a sound lesson in obedience and respect for your elders. Take off your clothes.Ô