Google Sets Up Distribution Network

Google Inc. is setting up a distribution network for social networking applications, adding a new twist in the Internet search leader's brewing rivalry with rapidly maturing startup Facebook Inc.

Although Google confirmed its plans late Tuesday, its new social networking platform won't be unveiled until later this week.

Google hopes to build a one-stop shop for software developers who create tools that make it easier to share music, pictures, video etc. on social networking sites such as Facebook and MySpace.com.

The popularity of these applications, also known as 'widgets', has grown dramatically since Facebook opened its Web site to accommodate outside developers five months ago.

Facebook now hosts more than 8,000 widgets, helping to boost its worldwide audience to about 50 million users and elevate its market value to $15 billion after Microsoft Corp. paid $240 million for a 1.6 percent stake in the Palo Alto-based company last week.

Microsoft trumped Google in the bidding for a piece of Facebook. Google's bigger social networking ambition is believed to be one of the reasons Facebook decided to deepen its partnership with Microsoft instead.

Google now hopes to attract many of the same applications thriving on Facebook to its own network, dubbed 'OpenSocial'. OpenSocial's combined audience will exceed 100 million users, claims Google.

The system is set up so the participating software developers will only have to code their applications once. Google will then ensure they are compatible with all the Web sites in its network.

Google also will feature the applications on its own social network, Orkut, which hasn't attracted much traffic outside South America and India.

Google won't try to make money from the OpenSocial network now, but hasn't ruled out the possibility of eventually inserting ads into the applications.