Microsoft + Yahoo + EBay = a Regulated Internet?

The Rest of the Merger Story

For the last two years we've been hearing rumors online about mergers between Microsoft and Yahoo with both interested in acquiring eBay. Today, Microsoft has made a 44.6 billion bid for Yahoo, which leaves me wondering about the future of the internet.

Today, the internet is basically controlled by those with search engine capabilities who sell ad space to the public. Google is number one, followed by Yahoo, with Microsoft a smaller player; eBay buys the most ad space, and eBay does not like Google.

The reasons behind eBay not liking Google are varied, but can be summed-up quickly in simple words: Google wants to be an eBay and is taking steps towards achieving this goal.

eBay pays Google lots of ad money right now to keep their name constant on the largest search engine. Google will be in trouble quickly if eBay ever has an opportunity to advertise on the largest search engine some place else.

If Microsoft and Yahoo merge, we have to look at the rumors about both of these companies wanting to buy eBay - who wants to get rid of their arch enemy Google. Will this proposed merger between Microsoft + Yahoo produce an environment that can support an eBay ad money pull-out from Google? The answer may be yes.

For all of us little people, a merger between Microsoft + Yahoo that allows eBay to leave Google, can trickle down into our pockets.

eBay owns PayPal, the largest online banking service. Google owns a smaller version of an online banking service. If Google is forced to take a step down from their position of being number one, there is no longer any competition keeping Yahoo, Microsoft, eBay or PayPal in line with their pricing. Prices will go up.

As consumer prices rise on the internet, smaller businesses are forced out of the game as they can't afford the costs. You can see a version of this happening on the eBay site right now. Each time eBay raises fee's, they lose a lot of smaller vendors. There are a lot of alternative auction sites on the internet, but none big enough to compete with eBay. This allows only eBay to say who gets to buy or sell online.