Both search and online advertising are increasingly controlled by a single firm, Google. That can be a problem because Google’s business is helped along by significant network effects (just like the PC operating system business).  Search engine algorithms learn by observing how users interact with search results.  Google’s algorithms learn less common search terms better than others because many more people are conducting searches on these terms on Google.

These and other network effects make it hard for competing search engines to catch up. Microsoft’s well-received Bing search engine is addressing this challenge by offering innovations in areas that are less dependent on volume.  But Bing needs to gain volume too, in order to increase the relevance of search results for less common search terms.  That is why Microsoft and Yahoo! are combining their search volumes.  And that is why we are concerned about Google business practices that tend to lock in publishers and advertisers and make it harder for Microsoft to gain search volume.

Can you actually believe that big and powerful Microsoft is trying to make a case that poor little Bing needs a more level playing field?  Who would have thunk it? 

I'm looking forward to seeing how Microsoft and Google battle it out in the next 10 years in not only search but also other services (i.e., packaged software vs. cloud computing, Internet Explorer vs. Google Chrome, and the mobile wars).  Why? This fiercely growing rivalry will tremendously benefit the global consumer with better technology choices that will continue to reshape and impact our professional and personal lives.