Burson-Marsteller Outed as Microsoft's Sock Puppet

The Wall Street Journal and the U.K.'s Observer both outed Burson-Marsteller today as the "sock puppet" of Microsoft's effort to create an Internet industry group to oppose Google's planned acquisition of DoubleClick.

Seems B-M has sent emails to players in the Internet space urging them to join a new industry group, Initiative for Competitive Online Marketplaces (www.i-comp.org). Turns out that Microsoft, which opposes the Google-DoubleClick deal, was the big backer behind the group.

From the Journal's article:

In recent months, public-relations firm Burson-Marsteller pitched media outlets and Internet companies on what it said were the dangers of the deal, which would bolster Google's already strong presence in online advertising. In the written pitches reviewed by The Wall Street Journal, Burson cites the deal as part of a larger discussion of "fair and free competition" in Internet-search and privacy rights of consumers.

In Europe, Burson urged Internet companies to become signatories on an online petition for a more "transparent and competitive Internet," according to the pitches. It directed the companies to a Web site, www.i-comp.org, and provided user names and passwords to log in.

The pitches cited a number of groups and an individual who had signed on to the effort. The pitches didn't disclose that Burson was working for Microsoft, Google's largest rival.

In the Observer story, the author of the emails to companies quickly admitted that B-M was working for Microsoft, while a Microsoft spokesperson was coy about the company's relationship with B-M and the initiative.

No matter. By today, the ICOMP web site names Microsoft as a "partner" with B-M. I had never heard of any of this before reading about it in today's Journal, so I don't know what the ICOMP web site said yesterday. FWIW, kudos to B-M and Microsoft for reacting quickly and putting Microsoft's name out front, rather than taking heat for several days and then doing it.

PS -- check out the B-M home page -- cool use of an avatar to give an intro speech about B-M.