Facebook Challenges Google

Competition between Google and Facebook is likely to ramp up this week. Facebook is expected to announce its own email service at the Web 2.0 Summit on Monday. A facebook.com email service would compete directly with gmail.com. Facebook is also challenging Google in the online advertising space. Facebook increased its share of the online ad market in the third quarter up from 18 percent to 23 percent. This week Google blocked Facebook and other Web services from freely accessing its user’s information. Also, an email from Google to its employees was leaked indicating a generous holiday bonus for Google employees plus a ten percent across the board raise in 2011. With 23,000 employees making an average salary of $100,000, the raises will cost Google $233 million annually. Analysts speculate that Google is sweetening the pot in order to keep employees from jumping ship to Facebook.

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