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Unsurprisingly, they don't like the idea - the gist of their post is that Microsoft will in some unspecified way reduce the openness of the web, and that Microsoft and Yahoo combined will have too much of a market share in areas like email and instant messaging (which make very little revenue, BTW Google - unlike paid search which you dominate).

Of course, Google are seeking to play upon Microsoft's past court cases and fines over software bundling, their dominance of the PC operating system market etc. and plant seeds of doubt in the regulators minds.

But here's a news flash for Google: many people in the Internet industry - and a small but growing number among the wider public - think you have too much of a market share in search. Many welcome - enthusiastically - a strong contender to Google, and see a Yahoo-Microsoft tie up as the only way this will happen any time soon.

Google bashing is something that goes on in the Internet industry every day - any dominant supplier will face similar criticism - but Google's past ethos and PR makes the company even more of a target. Google have themselves declared their aim "to not be evil" during their IPO, and yet here we see them with a dominant market share, playing regulatory chess because a significant contender may rise from the marriage of two of their competitors.

Hmm.

I don't think Google's stance and blog post is "evil" - they are playing the corporate game.

But I think this post could backfire on them. This tactic may open Google up to more public scrutiny, more public consideration of their dominance in search and their plans in areas including TVÂ and radio. Suddenly, they are big and slightly frightening - Google = Big Bad Corporate Brother. Â

Not to mention the opportunity it gives industry figures, thousands of bloggers (including this one), lawyers, press commentators and financial analysts to comment on Google's dominance on search and their apparent sour grapes at the sceptre of a credible competitor.

There are some heated comments at the Guardian - "Hello, Google, can you spell hypocrisy?" - and some important points are made - for example, the relative openness of DOS and Windows led to the PCs dominance over proprietary offerings from  Acorn, Amiga, Atari, Apple, etc. By comparison, Google can remove your site form their index tomorrow and not tell you why or bother to take your phone call.

Oh, and buying up market leaders is very much in Google's DNA. YouTube, anyone?

In conclusion, I think Google may be playing the right game with the regulators - with their own acquisition of Doubleclick still hanging in the air in Europe - but this may not be such a smart PR move.

I welcome a strong competitor against Google's dominance in web search - but wonder how easily Microsoft can integrate Yahoo and Aquantive into their fledgling search offering and established display advertising business.

I bet Bill is glad he won't be sitting in on those meetings.

Update: some interesting analysis of MS and Yahoo on the BBC blog and at Tech Beat.