Google and Microsoft conducted a fierce but amicable debate Thursday before U.S. senators from the Senate Antitrust Subcommittee over the $3.1 billion purchase of the online advertising firm DoubleClick by Google. Senators cannot block the deal, but they can pass on their concerns to antitrust regulators about combinations they oppose. Google has backed down yet another step on its former privacy-intrusive practices and announced "important steps" to improve privacy standards.

In March 2007, privacy concerns voiced soundly by human rights groups about the security of data gathered from users on the Web have determined Google to change their privacy policy, meaning that Mountain View server-logs will be annonymized after 18 months.

Microsoft, which lost the bidding war for DoubleClick, said before the senators that the deal would permit Google to "become the overwhelmingly dominant pipeline for all forms of online advertising," and will also have "sole control over the largest database of user information the world has ever known," Microsoft’s general counsel, Bradford L. Smith, said at the debate.

Google fought back Microsoft's accusations by pointing out that they're not exactly entitled to raise antitrust concerns, as it still remains subject to the terms of a five-year antitrust settlement it reached with the United States government in 2002, and it was blasted by European Union antitrust regulators just this month. Microsoft itself agreed to pay $6 billion for the online advertising firm aQuantive.

Almost two weeks ago Google announced that its AdSense would extend on the mobile phones too, and that it also wants to revolutionize Internet publicity with a new invention. Its Google Gadget Ads represents a facility which offers Internet ads under a new package, a more attractive and a more interactive one. To be more precise, not only the package makes the difference for Google Gadget Ads, but also advertisers have the possibility to develop new content.

Gadget Ads are non-traditional ad units with interactive, rich media capabilities – not only enable advertisers to target audiences in a flexible and timely manner via regular updates within the ad unit, but also allow users to engage with ad content in a way static ads haven't facilitated in the past.

A federal judge in late June rejected Google’s request to extend anti-trust oversight on Microsoft. Google had filed an antitrust complaint against Microsoft regarding a Windows Vista’s feature, called Instant Search, which allows users to search their hard drive. After Google’s complaint, Microsoft said it will allow end-users and computer makers to choose other program to handle desktop search. Nevertheless, Google asked US District Judge Colleen Kollar-Kotelly to extend antitrust oversight when it expires after an agreed four-year term in November. The company also asked the court to force Microsoft to beef up the user's ability to choose competing search company functions when conducting a search using Windows Vista operating system. Shortly after Google made its request, Microsoft responded that Google has no standing in the case.