After years of peace relative, Google and Microsoft dispose of their weapons ceasefire, the move – maybe ironically – can bring every additional antitrust supervision company.
The non-aggression pact, signed five years ago, let the two companies put aside many of their lawsuits. It also creates a process with which they can resolve conflicts behind closed doors, requires Microsoft and Google to follow the process before asking the regulator to enter. During this time, the two companies have rushed to a number of problems, including whether search engines must do it pay the news publisher. But Microsoft reaches the tip of the rope when Google does not play fair in advertising technology.
The two companies strive to break the deadlock through a series of negotiations that are increasing as referred to in the agreement. The problem finally reached the corner office, with the CEO of Satya Nadella and Sundar Pichai held a series of talks that did not reach the solution. The lack of resolution is what appears to be leading to the defort agreement, according to a new Bloomberg report.
Advertising technology problems appeared only three years in the agreement, when Microsoft complained that Google dragged his legs in supporting several new advertising formats Bing in one of the advertising management tools, looking for 360 ads. In addition, an antitrust lawsuit submitted by the State Lawyer General claimed that Google Also supports its own platform by offering automatic auctions to optimize bids; The equivalent tool is not available for advertisers who want to order a room on Bing. As a result of movement (or absence), advertisers using the Google ad platform feel easier to buy ads on Google, not Bing. Other search engines that rely on Bing are also affected, including DuckduckGo, Yahoo, and EcoSia.
“We raised worries with them, and they had just turned the ears,” said President Microsoft Brad Smith earlier this year. Google’s reluctance to work with Bing, he said, was charged a company of hundreds of millions of dollars per year in advertising revenue.
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When the two companies signed a pact in the fall of 2015, they were involved in 18 lawsuits that ranged from cellular networks to video compression, SMS messages, and more. Google Motorola 2011 release, where the search giant obtained a broad patent portfolio, touched a number of suits and put Google on the offensive against Microsoft, which has struggled for the field of a competitive cellular OS. Microsoft, in turn, demands Google to violate patents related to replacing SMS messages more than 160 characters and for patents related to video compression which was originally developed for Xbox.
By not working together, the two companies open up for additional antitrust supervision. Because the non-aggression pact tries to the clash before they reach regulators, antimonopolic officials have fewer formal complaints to be withdrawn when opening an investigation or submitting lawsuits. But without a pact in place, Microsoft and Google are free to complain about each other to which regulators or politicians will listen. And today, there seems to be some.
Microsoft approached the UK regulator last year about the problem with searching for 360-on the inability to follow the Bing ad format. It also complains that Google provides faster bidding details for advertising on our own search engines. The complaint echoed the one who was brought by the French competition authority, which after a two-year investigation found that Google had used another part of the DoubleClick advertising platform for publishers and DoubleClick Ad Exchange – to allow two parts by allowing it to work better with each other than with competitors. The completion in the case will produce Google changing the way the ad tool works with competitors, although not all changes will appear in all markets.
Microsoft has another reason to drop a ceasefire – lately, it hasn’t experienced the same level of supervision as Google. While trust removal sentiment has increased in Congress and aiming for Big Tech, Microsoft has relatively uncovered so far. That might be because the success of the company has recently been on the market that has not attracted the attention of regulators, including cloud computing and games, fields where the company is a strong competitor, although not dominantly. But recently, Microsoft has shown several colors by giving a leg-up team to competitors, according to complaints submitted by Slack with the European Commission.
How the detente tip affects space where Google and Microsoft have openly worked together still to be seen. Shortly after the signed agreement, Microsoft released the Office application for Android, and he discards Internet Explorer for EDGE, which runs on the Google Chromium Rendering Engine. It is not possible that the office will be withdrawn from the Google Play Store or the edge suddenly will drop chromium, but we might see subtle changes that change how close Microsoft includes Google platforms and technology.