Microsoft and Yahoo! should expect privacy and consumer groups to vigorously press regulators to closely and skeptically examine any deal–and at the very least urge them to impose a series of tough conditions on data collection and ad practices. This digital duo will not get a free data collection pass from privacy and consumer groups, even if a new combination would provide much needed competition to Google. Microsoft and Yahoo have created elaborate data collection services across platforms and applications, including for behavioral targeting. They have competing ad targeting businesses in search, display and mobile, for example. Both companies operate leading ad exchanges (where our profile data is bought and sold like food commodities). They also have competing ad targeting research and development efforts. Beyond the US, there are important competition and privacy issues for the EU as well.
A merger that further concentrates control by a dwindling very few over the digital marketing and advertising business illustrates how quickly consolidation has emerged as a principal and worrisome feature of the Internet era.
