Microsoft,_News_Corp._in_Early_Talks_on_Web_Deal

An article published on Wall Street Journal named “Microsoft, News Corp. In Early Talks On Web Deal” mainly talks about the Microsoft is dealing with News Corp. and several large media content providers about paying them not to be indexed on Google’s search engine. Furthermore, along with many news organizations, News Corp. also complains about Google and other big Web sites for “stealing stories” from their newspapers, although the search engines are driving valuable traffic to news websites and connection them with readers around the world. Despite the risk of losing a huge audience if the news organizations “delist” their stories from Google’s search index, News Corp. and other news outlets still said they want major websites to pay for the news. What is more, Microsoft is batting with Google to gain more share of the search market and establish Bing, Microsoft’s new search engine, as a strong search option. We cannot deny the advantages of prevent Google from indexing information from news sites; it is indeed a great way of better its position among other news organizations and prevent their exclusive report from stealing by rivals illegally. However, I am still wondering the possibility of the news organizations would risk losing a huge audience to get extra paid for its stories by removing their newspaper content from Google search engine; if the search engine owners pay everybody for every snippet they quote from every newspaper in the world, they would not have any profits left. There are several things are related to our microeconomics class. Microsoft’s move, discussing about the partnership with media content providers, is absolutely an effective way of prevent Google from becoming a monopoly firm. Google’s market share grew to 65.4% of the US search market in October. It is obviously to see the growth of this search engine giant appeared to gain at the expense of other search engine owners; Google is building a huge barrier for new search engine firms entering into the market. Since Microsoft launched new version of its search engine, Bing, the company has gained 9.9% market share. The “partnership” with other company contributes a lot to its growth; Join forces seem to be an effective method to compete against Google. Furthermore, partner with Microsoft also make those small firms strong enough to compete with other firms. The fair competition with many buyers and sellers, little entry and exit barriers, perfect information, costless transactions, maximize profits and homogeneous products, will leads the market structure closer to Perfect competition. (http://online.wsj.com/article/SB10001424052748704779704574552551351388382.html)