After all, Google isn’t approaching smartphones like a normal business. It has made Android open source available freely to any handset maker to use and change at will. Google says its only reason is to expand the use of the Internet on cellphones because it believed this would allow more people to use its search engine and other products on which the company sells ads.

Microsoft, by contrast, charges manufacturers $15 to $25 per Windows Mobile phone sold, an attempt to duplicate the rich business model of Windows for the PC. Google’s a-rising-tide-raises-our-ship approach deeply perplexes Microsoft executives. “If you asked me to go to a venture capitalist and pitch the Android business model, I don’t think I could,” said Robert J. Bach, president of Microsoft’s entertainment and devices division, at a meeting with reporters earlier this month.

Microsoft, Google and the Bear - Bits Blog - NYTimes.com

I’ve heard it said — can’t remember where, I’m afraid! — that governments have absolutely the best way of making money from money funnelled into startups by things like R+D tax credits; don’t get involved, just tax the winners.

With what Google’s doing with Android and Chrome, they must think that AdSense/AdWords/DoubleClick add up to Internet Tax…