There are news that google is entering to share the web hosting market. Is it true? If yes then would it dominate yahoo?

If Google does put out web hosting it certainly will be a force to reckon with as Google generally puts lots of thought and care in making solid products. I wouldn't doubt Google offering the service for free as a majority of their services are free. If this is the case, then watch out.

google wouldn't be the best and yahoo is certainly not the best.

i have 20gb webspace, 1tb bandwidth, no downtime for less then $10/month. every single company on this planet is in a galaxy far far away from beating that.