Is Google getting scared about MSFT-YHOO deal ?

It sure looks that way :)

Here is Google's official statement about the proposed MSFT-YHOO deal. As you can see from the statement, Google is warning users of unethical and closed practices of Microsoft to creep into the internet world as well.

Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies -- and then leverage its dominance into new, adjacent markets.

The statement also clearly tells you what Google is so scared about.. you guessed it - Email & IM.

In addition, Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet. Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors' email, IM, and web-based services? Policymakers around the world need to ask these questions -- and consumers deserve satisfying answers.

Now why would Microsoft keep quite when they see that Google is creating a negative PR for them. So here is Microsoft's official statement against Google. But its not entirely intended against Google. Also, the statement is a bit gentle.

Today, Google is the dominant search engine and advertising company on the Web. Google has amassed about 75 percent of paid search revenues worldwide and its share continues to grow. According to published reports, Google currently has more than 65 percent search query share in the U.S. and more than 85 percent in Europe. Microsoft and Yahoo! on the other hand have roughly 30 percent combined in the U.S. and approximately 10 percent combined in Europe.

Here is a post from Michael Arrington about Google's stand on the proposed deal.