against China largely is being met with support from industry watchers, who said the search giant has taken a major hit in good will in recent years by ceding to China's censorship demands.

If Google does take a stand against censorship and Microsoft continues to comply with China's demands, it's unclear how the industry would react.

"Microsoft committing to China so explicitly underscores the huge opportunity they have in Asia now that Google has taken at least a step backward," said Dan Olds, an analyst at Gabriel Consulting Group. "Microsoft faces the same problems as Google, like how do you deal with a government that controls your business and demands that you censor content. Microsoft has decided that the potential rewards outweigh the risks of being perceived as toadying to an authoritarian government."

In January, in a blog post that engagement in China is very important to the company.

"We have done business in China for more than 20 years and we intend to stay engaged, which means our business must respect the laws of China," wrote Ballmer at the time. "That's true for every company doing business in countries around the world: We are all subject to local laws."