Microsoft's secret 'screw Google' meetings in D.C.
Filed under: Google , Microsoft
The meetings are part of an ongoing campaign by Microsoft (MSFT), other Google (GOOG) opponents, and hired third parties to discredit the Web search leader, according to multiple sources with knowledge of the matter.
The meetings have occurred as frequently as once a week, sources with knowledge of the meetings say.
Microsoft employs several D.C.-based public relations firms, including Law Media Group, a secretive outfit founded by former Democratic operative Julian Epstein, and the Glover Park Group, which the software giant retains for issues related to "public policy and governmental affairs," according to Microsoft's website. LMG declined to discuss its work for Microsoft; GPG says it had never been involved with any "screw Google" meetings.
Nevertheless, one source familiar with the meetings says, "Law Media Group has several people who work full-time on Google-bashing. Everybody knows Microsoft is trying to throw roadblocks at Google and knock them off their game. Microsoft is trying to harm Google in the regulatory, legal, and litigation arenas because they're having problems with Google in the competitive marketplace."
"This is textbook Microsoft," the source adds. "Microsoft has got some of the best, highest-priced lobbyists that money can buy in Washington."
The meetings have been led by Fred Humphries, Microsoft's chief lobbyist in D.C. Ginny Terzano, Microsoft's Washington spokesperson, acknowledged that Google has come up in Microsoft meetings with "lawmakers, regulators, and our own consultants." But of Humphries's alleged "screw Google" meetings, she says, "This is absurd. While Google is a healthy competitor, Fred is focused on advancing policies that benefit our partners and consumers, and not running meetings of the type you describe. Your sources are badly misinformed, and your information is wrong."
"As you would expect, Microsoft and Fred are working to educate policymakers and regulators about the benefits of the Microsoft/Yahoo deal," Terzano says. "When you talk about the Microsoft/Yahoo deal, of course Google is going to come up."
A source with knowledge of the matter called Terzano's statement a "non-denial denial," saying, "This is an attempt to obfuscate the fact that they are indeed having 'screw Google' meetings."
Microsoft is working to allay Justice Department antitrust concerns over its proposed 10-year web search tie-up with Yahoo (YHOO), which would unite the No. 2 and 3 competitors in the space.
The new details about Microsoft's D.C.-based efforts to undermine Google shine a light on the role of third-party firms, funded by tech giants, that engage in activities such as astroturfing, corporate propaganda, and misinformation. Media reports have hinted at a "whisper campaign" undertaken by entities acting at Microsoft's behest to undermine Google, both with policymakers and the public.
In recent months, two heavily detailed, annotated versions of confidential Google slide presentations -- one dealing with competition issues, the other with behavioral targeting -- have been published by a Santa Monica–based group called Consumer Watchdog. The annotations are highly critical of Google and seek to rebut the search giant's arguments. Consumer Watchdog has thus far declined to reveal the source of the documents.
"We consulted with someone outside our organization who did the mark-ups. We published them because we thought they were right on the issue," says John M. Simpson, who leads coverage of issues related to Google at Consumer Watchdog. Microsoft and its PR firms LMG and GPG deny any involvement in producing the annotated Google presentations.
Simpson says the news of the "screw Google" meetings comes as "no surprise whatsoever." "I suspect that such meetings are happening at Microsoft, and I would suspect that Google has had similar meetings," Simpson says. "It's obvious that Microsoft is engaged in some sort of organized campaign to undermine Google."
That there is no love lost between the two companies is well-documented. Microsoft chieftain Steve Ballmer once famously hurled a chair across his office during an anti-Google tirade in which he raged, "I'm going to f*cking kill Google." The incident was revealed in court documents related to Google's poaching of Microsoft's former point man in China, Li Kai-Fu. Google lured Li to head its effort there, leading to a lawsuit from Microsoft, which Google won.
Of course, just as Microsoft holds Washington meetings to discuss its Google strategy, Google does the same. The two companies compete on multiple fronts, and each seeks to enhance its own position while undermining its rival.
"Of course we keep an eye on what's happening in the industry," Google spokesman Adam Kovacevich says, "but the focus of our Washington advocacy has always been advancing good public policy for the Internet and our users."
In less than a decade, Google has become nearly as dominant in the Internet search market as Microsoft is in desktop software. Microsoft recently launched a high-profile foray into the search market with a new search engine, Bing, and it seeks to partner with Yahoo to mount a stronger challenge. But Google, with nearly 70 percent of the search ad market, has little to fear from Bing or the planned joint partnership, and that dominance remains an immense source of Microsoft's frustration.
Microsoft and Google are also gearing up for an intense showdown over the very future of the PC operating system. Google recently said it plans to introduce a new web-based operating system based on its Chrome browser (though to date, Chrome has barely dented Microsoft Internet Explorer's lead in the browser market). Google's fundamental strategy to shift the locus of computing onto in the Internet, and into "the cloud," represents an ambitious assault on Microsoft's dominance of the desktop-based operating system market.
With billions of dollars at stake, the sophisticated D.C. operations and message machines are an inevitable result of Google and Microsoft's epic struggle for dominance. With the Obama administration perceived as "Google-friendly," despite ongoing federal inquests into Google on antitrust grounds, Microsoft has little choice but to ensure that its voice is heard amid the cacophony of Capitol Hill lobbying.
And if secret "screw Google" meetings are any indication, this could get very ugly -- and very entertaining.
Reader Comments (Page 1 of 2)
8-28-2009 @ 12:13PM
peter said...
well now what would anyone expect? The Russian borns and Willy Gates resident nut job cum harvard boy with distintction going at it. SLEAZE of the first degree; that is how these people get rich.
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8-28-2009 @ 12:32PM
GeraldR5 said...
Microsoft has every reason to be worried, what with the bombs known as Vista and the autrocious MS Office 07 releases. After only a month of Office 07, I ditched the program and reloaded my MS Office 03 program..at least it worked and did not contain some of the horrendous thinking that went into the newer Office. Google, on the other hand, presents programs that work. They're user friendly and the company seems to avoid the pomposity that has become a Microsoft trademark!
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8-28-2009 @ 12:46PM
Question said...
So confused. What exactly is surprising about this? Isn't this expected and standard? Of course, Microsoft's lobbyists meet to talk about Google, one of the company's main competitors.
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8-28-2009 @ 12:49PM
Rick said...
The fact that Microsoft has to use such tactics clearly indicates how desperate they are. Maybe they should spend their time demonstrating why we should even buy their crap anymore.
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8-28-2009 @ 1:15PM
Terry said...
I can't stand columns or articles that quote "sources with knowledge" or "insiders". From this article, the only thing I can be sure of is that Microsoft and Google are competitors. The rest is unsubstantiated. This was a waste of 5 minutes of my time to read this article.
The only things I'm more tired of hearing about than Microsoft's disdain for Google is Brett Favre and the steroid scandal in baseball.
8-28-2009 @ 12:49PM
sonnype said...
maybe the boys at Microsoft should better spend their time improving their software and own search engine and then they could have a better product than google.Sort of reminds me of the American auto companies bashing the Japaneese car makers instead of making a quality product that could compete
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8-28-2009 @ 1:10PM
Denny said...
MSFT had better be worried. Google simply has a better mousetrap and their products scare the pants off MSFT. MSFT simply can not find the wherewithall to produce bug-free, user-friendly products.
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8-28-2009 @ 1:17PM
ajgorm said...
"The effort is designed make Google look like the big high-tech bad guy here."===???Google earth can spy on you in your front yard as you mow the lawn. Big brother is watching YOU>
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8-28-2009 @ 5:17PM
F said...
"Google earth can spy on you in your front yard as you mow the lawn."
So can any of your neighbors! The things you do in public view are PUBLIC!
8-28-2009 @ 1:17PM
RK said...
I had no clue that all the big corporations wants to screw their competitors. I am sure Apple or Google will never even think of such an evil.
Thanks for the news and revealing the big secret.
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8-28-2009 @ 1:47PM
Nora Varshavsky said...
If Microsoft wants to 'screw' Google, I want to 'screw' Microsoft-- nothing of Microsoft is reliable, stay with SAP ir IBM, and then you will know that truth...Do not touch Google!
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8-28-2009 @ 1:54PM
Norman said...
If Microsoft wants to 'screw' Google, we will want to 'screw' Google - nothing of Microsoft is reliable, Stay with SAP and/or IBM, and then you will know the difference... Do not touch Google!
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8-28-2009 @ 1:57PM
Tom said...
All this cr-- over a rumor. Don't you have any facts to report on?
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8-28-2009 @ 2:15PM
pietro said...
Why is Microsoft all of a sudden being singled out for lobbying against a Tech titan like Google? For more than a decade, the likes of Apple, IBM, and Google have been trying to put chinks in Microsofts armor and undermine them the exact same way. This is not news. This is just the typical American Corporate Business practices on display.
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8-28-2009 @ 2:29PM
Noturpuppet said...
This reads like reverse psychology to me. The title should read "Screw Microsoft Reporting". This is a propoganda filled article bashing Microsoft with little to no factual data to support it...good one. I see it already reeled in a few suckers by the posts above.
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8-28-2009 @ 3:09PM
blair said...
MicroSoft needs new management .. just another sign of desparation.
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8-28-2009 @ 3:14PM
zorg said...
How many of these comments are from MSFT astroturfers seeking to minimize the impact of this story? Some fraction of the "move along; nothing to see here" nonsense is probably from MVPs.
Face reality, MS operates at a level of evil not seen in most of the corporate world. They harm consumers as an unregulated natural monopoly, extracting supernormal profits and plowing some of them back into "Screw Everybody" meetings and support of the reigning political party.
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8-28-2009 @ 3:20PM
Buffalo Bob said...
I bought my first Apple in 1983 (before Mac) and never looked back. Ya gotta wonder about any system designed by a company that works like this: "To shut down, first click start." That about sums it up.
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8-28-2009 @ 3:44PM
HereAndNow said...
Microsoft is lobbing missiles everywhere:
- Watch how they try to derail HTML5.
- Watch how Office Web for smartphones will just happen to be built with Silverlight, so every smartphone OS will have to support Silverlight, to get Office Web.
Microsoft doesn't want to COMPETE in the market with quality, innovative products that people will naturally want to buy & use. Microsoft wants to CONTROL the market. And they will do whatever they have to, to achieve it.
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8-28-2009 @ 4:13PM
bob said...
Pass Laws that it is illegal to lobby congress or any gfovernment official.
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