Many people have a false impression that the Chinese government fears the Internet. In fact, it is just the opposite.”

–Chinese Foreign Ministry spokesman Qin Gang

If China wants to correct the “false impression” that it fears the Internet, ending its paranoid blocking of Web services would be a good place to start. This morning, Beijing extended the Great Firewall of China, restricting Internet access to Twitter, Flickr, Hotmail and Bing, among others. As confirmation of this, Herdict–a Harvard University site that monitors Internet accessibility–shows a spike in reports claiming that Twitter is inaccessible in China this morning.

The Wall Street Journal’s China Journal reports similarly.

The move–presumably part of the Chinese government’s efforts to censor media ahead of the anniversary of the Tiananmen Square massacre this Thursday–was more an inevitability than anything else. Like YouTube and blogging services WordPress and Blogger, Twitter provides Chinese citizens with an outlet for dissent and self-expression, things for which the Chinese government has a profound distaste.

So, it comes as little surprise that the repressive government in Beijing has blocked it. It did the same thing to YouTube back in March.

“It’s just part of life here,” said Beijing-based Twitterer Kaiser Kuo. “If anything surprises me, it’s that it took them so long.” 

I have a request for comment in to Twitter and will update if/when I hear back.

• Microsoft approached Yahoo after the company posted earnings and gave it two days to respond. Yahoo apparently missed that deadline, so Microsoft went public with its offer.
• Other bidders may emerge before this all plays out. “This deal’s not going to get done at that price,” a Yahoo executive told BoomTown. “The reason Yahoo stock is so depressed is all about lack of leadership and not about potential. Microsoft is taking advantage of that.”
• Microsoft obviously isn’t after Yahoo for its software. “Yahoo’s stuff is almost all written in PHP, and runs on FreeBSD and Red Hat Linux servers,” John Guber notes over at Daring Fireball. “I don’t think Microsoft has ever bought–and maintained–a significant software product that wasn’t written against Microsoft technology. E.g., when they bought Hotmail, the migration from FreeBSD/Apache to Windows 2000 was painful and difficult. Hotmail was just one product (albeit a popular one). Yahoo has hundreds of properties, several of them, I’m guessing, more popular than Hotmail was back in 2000. … My gut feeling is that Microsoft’s culture is the driving force here. I don’t think they care about any of Yahoo’s technology, with the possible exception of Yahoo Search. What Microsoft sees in Yahoo isn’t software but page views and advertisers. So rather than, say, rewriting Yahoo Mail using Windows technology, I expect them to just force Yahoo Mail users over to Windows Live Hotmail.”
• In terms of search-market share, a combined Microsoft-Yahoo is more than 50% smaller than Google.
• The Department of Justice is “interested” in reviewing the competitive effects of the proposed deal and will hold a hearing on it Feb. 8. Blair Levin, a former FCC chief of staff who’s now an analyst at Stifel Nicolaus, thinks the Feds won’t take issue with it. “The basic argument for the deal relies on how Google is growing its lead and that to compete, Microsoft and Yahoo need scale,” he wrote in a research note. “As part of that argument, we think the companies will point to the fact that Google will remain the leader in the market even after the transaction, and thus they will be able to argue that there will still be incentives for the combined companies to innovate.”
• Jeff Chester, director of the Center for Digital Democracy, hopes the Feds will take issue with the deal. “Today’s proposed acquisition by Microsoft of Yahoo, if consummated, will create a powerful interactive Internet duopoly in online media,” Chester said. “Google and Microsoft will have inordinate power to shape the online communications marketplace, including journalism, entertainment and advertising. The once most potentially democratic of all mediums–the Net–is being shaped by the same powerful forces that consolidated the ‘older’ media of broadcasting and newspapers. There are consequences to democratic societies everywhere, as two digital gatekeepers are likely to control how the Internet and other interactive media evolve. In an era when individuals are increasingly conducting their personal, social and political lives online, the corporations that control the digital experience will have a far-reaching influence over every aspect of society.”

To keep you abreast of tech news while he’s away, we’re compiling a daily digest of 10 must-read tech stories. We’re calling it the Tech 10 and it appears below.

1. Getting to know you: Facebook is developing targeted ads based on the information that users of the social-networking site reveal about themselves. Quoting anonymous sources at the company, The Wall Street Journal says the advertising system is at an early, changeable stage, but Facebook hopes to launch a basic version late this fall.
2. It looks like Apple will turbocharge its iPods with the Mac OS. According to AppleInsider, the upgraded digital music players will debut at a media event next month and are part of the computer maker’s master plan to create devices around its legendary operating-system software.
3. Dude, where’s my YouTube? Initial response to ads overlaid on downloaded videos from the popular online site is overwhelmingly negative, Computerworld reports, noting that the comments on a YouTube feedback blog could be summarized by the one-word review of a user from Oro Valley, Ariz.: “Yuck.”
4. Hoping to shore up anemic sales of its PlayStation consoles in the face of competition from Microsoft and Nintendo, Sony said it will market a recording-transfer device (pictured here) in Europe enabling users to record TV programs on their PlayStation 3 video-game consoles for transfer to the PlayStation Portable. According to the Associated Press, the new gadget, dubbed PlayTV, will give game consumers an additional function for their PlayStations beyond playing video games.
5. Too hot to handle? Microsoft announced that it’s offering a free retrofit to the Xbox 360 Wireless Racing Wheel after reports from a number of users that smoke issued from the device when used on AC/DC power, according to PC World. The retrofit comes six weeks after it extended the Xbox warranty for “flashing lights of death” failures–and took an earnings hit of $1.15 billion for the anticipated repair bill.
6. Paper trail, indeed. Many iPhone customers are irked over the book-sized bills they are getting from wireless provider AT&T, reports the New York Times. The bills itemize all phone calls, as well as every text message and online data transfer. In response, AT&T announced that beginning Sept. 28, customers would get summarized bills removing the wireless detail.
7. Microsoft and Nokia won’t sit back and watch while the iPhone marches through Europe, apparently. The companies are joining forces to put Windows Live services on selected Nokia S60 handhelds, reports IDG News Service. Customers in 9 countries in Europe and two in the Middle East will be first to get the services, including Hotmail and Live Messenger. A Microsoft spokesman couldn’t say when the functions would be available for cellphones in the United States, however.
8. Speaking of teaming up, MTV and MySpace are collaborating on a series of one-on-one dialogues with the major Democratic and Republican presidential candidates. CNNMoney.com reports that the hourlong events will be streamed live on MTV.com and MySpaceTV throughout the fall on college campuses.
9. Palm’s Foleo computer, first exhibited at this year’s D Conference, is having trouble leaving the gate, writes Tech Trader Daily, quoting a Deutsche Bank analyst who disclosed that the debut in stores of the stripped-down laptop scheduled for this week “was delayed after software bugs were detected. … Palm now expects the device will ship in late September/early October.”
10. Playboy Enterprises is, uh, unveiling Playboy U, a social-networking site targeted exclusively at college students. The move online by the granddaddy of the skin rags, says the Associated Press, is an attempt to capitalize on the Playboy brand as the 54-year-old magazine continues to lose money and readers. The site is modeled after Facebook and MySpace, with users allowed to “friend” other college students. Although there will be no nudie shots, users will be able to discourse on such topics as how many sex partners they’ve had or what they think of penis enlargement.

–posted by Associate Editor John Sullivan