If you haven't seen it yet, go read the NY Times article named New Microsoft Browser Raises Google's Hackles. In short, Google is upset with Microsoft that IE7 comes with MSN Search predefined in the toolbar search box. Google is so upset about this that they have complained to the Department of Justice & the European Union.
Google is raising objections to the way that it says Microsoft, the incumbent powerhouse of computing, is wielding control over Internet searching in its new Web browser.
Google, which only recently began beefing up its lobbying efforts in Washington, says it expressed concerns about competition in the Web search business in recent talks with the Justice Department and the European Commission, both of which have brought previous antitrust actions against Microsoft.
The new browser includes a search box in the upper-right corner that is typically set up to send users to Microsoft's MSN search service. Google contends that this puts Microsoft in a position to unfairly grab Web traffic and advertising dollars from its competitors.
There is a huge forum thread on this topic at WebmasterWorld. The thread sums up the argument and as you can see, people are taking both sides. Here are some snippets from the thread;
Well done Microsoft. Hopefully MSN and Yahoo Search can increase their search engine market share and reduce Google monopoly power over us.
Google and other search providers have to pay for a place on the desktop or in the default Windows browser, while Microsoft doesn't.
Google is complaining and at the same time they have paid Dell a small fortune to install the google toolbar on all their pcs?
Microsoft and Google fighting it out can only be good for the webmaster.
Microsoft use their browser to promote MSN Search, Google uses Firefox and Opera to do exactly the same thing.
My thoughts? Well, I kind of posted them at Search Engine Watch Blog and I am glad Danny post-scripted with his own thoughts on the matter.