Yahoo-Google Search Alliance: What happened to Microsoft?

Posted by on Dec 3rd, 2010 and filed under Campus Updates, Featured. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

The Fair Trade Commission of Japan has approved the signed deal between Yahoo Japan and Google in terms of search engine in Japan.

The deal was signed in July 2010 and said that it would adopt the search engine of Google as well as its Web-advertising business. Yahoo Japan will be using Google’s search results and both are given control over the domestic search market, which is around 95 to 98 percent. They will only, however, have that 90 percent in terms of technology, and nothing else. The FTC would still look into it that the merge will not violate any anti-monopoly law.

The signed deal had gotten numerous criticisms from Microsoft and the domestic online retailer Rakuten, Inc. Microsoft and Yahoo had previously showed signs that they will be the ones who will tie-up. But according to Yahoo Japan, Microsoft’s technology on search engines were not strong enough for their needs and one problem they had was the Japanese language capabilities.

Yahoo Japan has a 57% share of the search market of Japan, Google has more than 30 percent, and Microsoft has only three percent. With this figures, Microsoft is complaining that the tie-up would lead to Google having almost full control of Japan’s market, and that it was an unfair competition.

Because of these complaints, despite the FTC approving the deal, they will still continue to investigate it in case there would be violence or breaches of the anti-monopoly law. They also noted that Yahoo and Google will remain competitors in the search engine aspect and Web advertisement business.

For now, as long as there isn’t any violation, the deal will continue. Indeed, Google has proven itself to be one of the most powerful Internet companies in the world.


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