Ballmer is correct. This is Google's problem. In theory, they're pulling out now due to surveillance and hacking from the Chinese. That's basically admitting that their encryption and security methods aren't cutting it, and they're not going to make them better.
Remember, Google already agreed to filter google.cn, so this really has nothing to do with the idea of filtering search results. They've been doing that for ages. This has to do with being hacked. Perhaps Microsoft was hacked and isn't announcing it, but I bet they're working on upgrading their security if they were. Google, apparently, is not.