Home  › Search › Paid Search

Microsoft to Contest Google/Yahoo Search Deal to Japanese FTC

  |  August 2, 2010   |  Comments

Company says alliance is more harmful to competition than proposed 2008 deal.

Microsoft intends to protest a Yahoo-Google search partnership with Japanese regulators on grounds of anti-competitive behavior. The decision follows an announcement last week that Google and Yahoo Japan have agreed on a search technology partnership.

Similar to Microsoft and Yahoo's search alliance in the U.S., the arrangement will see Google's technology powering Yahoo Japan's search product, with the pair splitting the resulting search ad revenue. Unlike the U.S. deal, however, the relationship will result in a single company dominating the Japanese search market, with Google technology accounting for around 90 percent of all queries conducted there, according to data from comScore. California-based Yahoo currently owns a 35 percent stake in Yahoo Japan, but the company is operated independently of its U.S.-based sibling.

In a blog post published last week, Dave Heiner, Microsoft's VP and deputy general counsel, argued the deal would be detrimental to both Japanese advertisers and consumers, by eliminating competition between the two and granting the Google/Yahoo pairing almost exclusive access to users' search data in the country. "This agreement is even more anti-competitive than Google's deal with Yahoo in the United States and Canada that the Department of Justice found to be illegal," he wrote.

In a statement e-mailed to ClickZ News today, Brad Smith, Microsoft senior vice president and general counsel, confirmed the company will lodge a formal complaint with Japanese regulators following a statement from Google that the deal has already been given the green light. "Yes, we plan to present evidence to the Japanese FTC explaining why we believe that this deal is substantially more harmful to competition than Google’s deal with Yahoo in 2008 that the U.S. Dept. of Justice found to be illegal," he said.

Microsoft and Yahoo agreed to a similar arrangement in the U.S. last year, though that deal will result in Microsoft representing only a 30 percent share of searches, a fact that helped its antitrust clearance from the FTC.

In 2008, however, the DOJ blocked a search partnership between Google and Yahoo, arguing it would "materially reduce important competitive rivalry between the two companies.” It is that decision which Smith and Heiner reference.

ClickZ Live New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!

ABOUT THE AUTHOR

Jack Marshall

Jack Marshall was a staff writer and stats editor for ClickZ News from 2007 until August 2011. 

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Search newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

    Information currently unavailable

Jobs

    • Creative Project Manager
      Creative Project Manager (Agora Inc. ) - BaltimoreThe Creative Project Manager of PubSVS will work directly with the IRIS team and will be responsible...
    • Digital Marketing Associate
      Digital Marketing Associate (Connections Media) - Washington, DCConnections Media, LLC, a Washington, DC-based digital agency providing strategy...
    • Digital Marketing Specialist
      Digital Marketing Specialist (The Oxford Club) - BaltimoreThe Oxford Club is seeking a talented writer/marketer to join our growing email lead...