Lesson Plans - Law

"Buying the Competition"   - A Simplified Mock Trial


Fact Sheet:

Buying the Competiton
Editors note: The facts in the case are based on these two articles: Google: Microsoft Deal Bad for Internet AP   and Microsoft Touts Benefit of Yahoo Deal AP
Google argues that if Microsoft's hostile bid for Yahoo succeeds Microsoft will be able to stifle innovation and leverage its dominating Windows operating system to set up personal computers so consumers are automatically steered to online services, such as e-mail and instant messaging, controlled by the world's largest software maker.
If they get together, Microsoft and Yahoo would have about 16 percent of the world wide Internet search market -- still far behind Google's 62 percent share, according to comScore Media Metrix. But Microsoft and Yahoo already are far bigger than Google in e-mail and instant messaging, and conceivably would be in a better position to squash rival services if they combined.
Google pointed to the way Microsoft previously used Windows to help extend the reach of its Web browser and other applications -- a strategy that triggered a U.S. Justice Department lawsuit alleging the software maker illegally used its operating system to stifle competition. The dispute ended with a 2002 settlement that required Microsoft to abandon some of its past practices. Would Microsoft now attempt to exert the same sort of influence over the Internet that it did with the PC?
Therefore, Google asks the acquisition be stopped.
Microsoft answered, that the acquisition raises competition, rather than eliminates it, in the Web advertising market. Google's clearly got a dominant position with about 75 percent of paid search world wide.
Preventing Microsoft from buying Yahoo would undermine competition by allowing Google to become even more dominant than it already is on the Internet.
Microsoft says the Yahoo deal would make Microsoft a "strong No. 2" competitor against Google, and the deal should be allowed.

"Buying the Competition" - Simplified Mock Trial based on the Canada School Net Simplified Mock Trial Design.


2004 - 2008 The Learning Foundation - LFS Program in Asia