Microsoft's cooperation with HP

In a bid to boost its Web search traffic, Microsoft Corp. on Monday announced a deal that will make its Live Search the default on Hewlett-Packard Co. personal computers shipped in the U.S. and Canada, starting in January.

The deal also calls for HP, the world's largest PC maker, to install copies of Internet Explorer with an extra Live Search toolbar on those computers. Microsoft said the toolbar also links to HP services such as its Snapfish digital photo printing site.

Since Microsoft called off its $47.5 billion offer to buy search competitor Yahoo Inc., the company has been under pressure to prove it has a new plan for attracting more people to Live Search.

Google Inc. fields more than 10 times Microsoft's search traffic and has parlayed that into billions of dollars in advertising. Yahoo, the No. 2 search engine in the U.S., attracts more than twice as much as traffic as Live Search.

Microsoft has already made a similar arrangement with the much smaller, China-based Lenovo Group, while Google has a distribution deal in place with Dell Inc. and Mozilla's Firefox Web browser.

"Every Dell machine we buy at home that comes with the Google toolbar, it's not a good day in my family when that happens," Ballmer said to a gathering of employees on May 1. He told them Microsoft is now willing to invest more in distribution deals.

Microsoft would not reveal financial details of the deal or say how much additional search traffic it expects to gain.

Angus Norton, a senior director in Microsoft's Live Search group, said about 40 percent of Web surfers use whatever search engine is set as the default on their PC.

The Washington Times

Yahoo kicks off re-wiring project

Yahoo users will soon have one place where they can manage all the services they use on the popular website.

The company has begun a mammoth re-engineering project that will unify the disparate services Yahoo runs.

It hopes the project will transform the site into a vast social network where Yahoo users can quickly find and communicate with each other.

The project should also aims to make it easier for web developers to use Yahoo data and services for their own ends.

Monkey magic

"We are literally in the process of rewiring Yahoo from the inside out," said Ari Balogh, chief technology officer at Yahoo in a speech at the Web 2.0 conference in San Francisco.

By re-engineering its internal workings it hopes to tear down the walls between its web sites and services so each user only has to visit one place to view and manage everything they do at Yahoo.

Yahoo has built up its online presence using both home-grown services and by acquisitions. Recently it has bought photo-sharing site Flickr, bookmarking site Del.icio.us and social calendar site Upcoming.

Yahoo is providing information so developers can call on the search engine and users can tune their sites to appear high up in keyword results.

The re-engineering project is part of a larger strategy, dubbed Y!OS (Yahoo Open Strategy) that is due to be unveiled in late 2008.

The announcement came two days before the expiration of a deadline set by Microsoft for Yahoo to agree to a merger. Microsoft has threatened to mount a hostile takeover if Yahoo refuses the offer or does not respond.

Reuters

Alarm at Google Yahoo partnering

Regulators in the US are being urged to investigate any potential online advertising and search partnership between Google and Yahoo.

The call by a coalition of 16 American civil rights and rural advocacy bodies comes despite the fact no firm deal has actually been announced.

"We all suffer in such mega mergers," Gary Flowers of the Black Leadership Forum told BBC News.

The justice department is examining a trial the companies did in April.

It has been widely reported that it is looking into the anti-trust implications of last month's two-week test.

However, the department says it has no comment on the coalition's demands because there is no definitive agreement between Yahoo and Google at the moment.

But reports say that the two companies are presently hammering out the intricacies of a future potential advertising and search agreement, and are sharing their plans with antitrust regulators.

At Google's shareholder meeting on Thursday, Chairman Eric Schmidt said: "If there were a deal [with Yahoo], we would anticipate structuring the deal to address the anti-trust concerns that have been widely discussed."

'Never positive'

This assurance is not good enough for the coalition which is made up of the League of Rural Voters, the National Black Chamber of Commerce and the American Agriculture Movement.

It also includes the Black Leadership Forum, an umbrella group of 36 civil rights organisations including the NAACP and the National Urban League.

In a letter to Assistant Attorney General Thoma Barnett, head of the Justice Department's anti-trust division, the coalition argues that such a deal would give Google almost 90% of the search advertising market and strengthen its influence over internet users' access to information.

"We face a possible future in which no content could be seamlessly accessed without Google's permission," the letter states.

The effect Mr Flowers says of such large partnerships is never positive and would for the black community, as for other communities, "condense competition, increase prices and limit new business opportunity on the internet".

'Do no evil'

League of Rural Voters' executive director Niel Ritchie claims that the do-no-evil mantra may no longer apply in today's marketplace in which Google's reach is apparently without bound, touching more and more aspects of our everyday lives.

"We believe the government should give this agreement very careful scrutiny," he says.

Mr Flowers says:

"Google has already exhibited a pattern of violating privacy, engaging in anti-competitive conduct and using its monopoly power in the search market to drive internet users to its affiliated services and its viewpoints on policy matters.

"Any joint combination with Yahoo could dramatically worsen these problems."

The Centre for Digital Democracy, a consumer advocacy group, is also willing to push regulators to block any deal and wants European consumer groups to raise concerns with European Union officials.

"You can't allow Google to operate a portion of its leading competitor out of its back pocket," Jeffrey Chester executive director of the CDD told the Associated Press.

There has been no comment from Yahoo or Google.

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