Japan Replaces Microsoft with Google

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Japan has announced its decision to replace Microsoft with Google for the main search partner and it didn’t set with Microsoft. Microsoft’s complaint is that this makes it an anticompetitive market for search engines.

In 2008 Google made a deal with Yahoo in the United States and Canada market and it was ruled by the Department of Justice to be an illegal transaction. If Google had succeeded it would have given them almost 90 percent of paid search advertising. This new deal with Japan now gives them almost 100 percent of all searches that will be both paid and unpaid in Japan.

At this time, Microsoft has not disclosed whether they will challenge this deal based on legalities.

Earlier this week Yahoo Japan stated that it had signed a deal with Google in which they would provide it with search related advertising services. With this deal Google will be providing the search results for Yahoo Japan by the end of 2010.

Microsoft and Yahoo had made a deal and have a broad search and advertising partnership in the United States and a number of other countries and their intention was to be able to compete against Google. This deal did not extend to Japan where Yahoo currently owns 34 percent of Yahoo Japan. Japan’s Softbank currently owns the rest of the advertising.

Basically this means that there will be a no search competition in Japan and Google will be controlling all of the personal search information on all Japanese consumers as well as businesses.

Google countered Microsoft’s complaint by stating that this deal is different then the one that occurred in 2008. Google has consulted with Japan’s Fair Trade Commission and received confirmation that they had no objections to this proposed transaction.

Yahoo Japan is giving Google the licensing on their advertising platform, however, Yahoo will manage its own advertising system and relationships with companies that are advertising data. It will be separate per Google.

Google further states that Yahoo Japan will still be able to compete as an independent as well as it will have the capabilities to customize their search engine service for end users. This will give them all users a different look from the one currently on Google’s site.