January 18, 2011, 5:13 PM — OK, this gets extremely confusing because the "facts" have changed as the story has evolved over the past 24 hours, but here goes...
It all began when the Matt Cutts, the guy in charge of anti-spam efforts at search giant Google, found what appeared to be a major spam operation on Facebook perpetrated by a company called Make-my-baby.com. ReadWriteWeb has a good (and updated) article about this.
Cutts decided to check out the site (I think) because an AdAge article listed it as the third-largest advertiser on Facebook, behind only AT&T and Match.com. What he found over at Make-my-baby.com was a familiar toolbar scam. Take it away, Matt:
Visiting make-my-baby.com instantly prompts you to install a browser plugin. The "terms and conditions" link takes you to http://mmb.bingstart.com/terms/ which has phrases like "If Chrome ("CR") is installed on your PC we may change the default setting of your home page on CR to Bingstart.com."
In other words, if you're not really paying attention, you're granting permission for the toolbar to change your default home page to Microsoft's Bing search engine. Many people who didn't pay attention no doubt were puzzled, or even infuriated, to find that their home page had been switched to Bing.
Why would they do this? Money. Make-my-baby.com is an affiliate marketer of Bing, meaning it gets a percentage of revenue generated by users of Microsoft's search engine who click on ads. That's a lot easier to do if online searchers are using Bing instead of Google or Yahoo.
But here's where it gets confusing. According to Facebook and comScore, Make-my-baby.com is not Facebook's third-largest advertiser. In fact, Facebook says the site isn't an advertiser at all.
Meanwhile, Microsoft tells Search Engine Land's Danny Sullivan that it has cut ties with Zugo, a web publisher and creator of the toolbar that was using Make-my-baby.com as a Trojan horse to sneak onto people's computers:
Distribution deals and affiliate programs are an important part of how all search engines introduce their product to customers. That said, we have been made aware of some practices from a specific publisher that are not compliant with the guidelines, best practices and principles put in place by Bing.