Microsoft uses D.C. muscle to squash Google-Yahoo deal

One reason the feds may be investigating the proposed Google-Yahoo deal is heavy, behind-the-scenes lobbying by Microsoft. Sources say that Microsoft is pulling out all the stops in an attempt to kill the ad-sharing deal.

The Seattle Post Intelligencer's Microsoft Blog puts it bluntly: "One possible reason why the Google-Yahoo pact could be in trouble: Microsoft's lobbying efforts."

The blog points to an article in the Roll Call Washington newsletter that quotes a tech industry source as saying:

"Microsoft is pulling out every favor it's got...It has a very close relationship with DOJ and the White House, and all of that pressure is being brought to bear."

The blog says that the story also notes that Microsoft has asked heavy online advertisers and advertising groups, such as the American Corn Growers Association, General Motors and American Express, to oppose the deal as well.

Like it or not, that's how the game is played in Washington. In this instance, though, Microsoft is lobbying for the right thing. The Google-Yahoo deal would be clearly anti-competitive, and should be squashed, but on its own merits (or lack thereof), not because of lobbying.

Preston Gralla is a contributing editor for Computerworld, and the author of more than 35 books.