Microsoft will try to block Google-Yahoo Japan deal

It plans to present evidence to Japanese competition officials that the deal is anticompetitive

A legal battle is brewing between Microsoft and Google for control of Japan's lucrative search market.

Microsoft will try to convince Japan's Fair Trade Commission that a search advertising agreement struck earlier this week between Google and Yahoo Japan will be harmful to competition, Microsoft said on Friday.

It had voiced concerns about the deal almost as soon as it was announced Tuesday, saying it gives Google too much control over Japan's search and search advertising markets. The deal means Google's search engine will be used to provide results for more than 90 percent of searches conducted in Japan.

“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. Department of Justice found to be illegal,” Microsoft said Friday in a brief statement to reporters.

Under the deal, Yahoo Japan will switch from Microsoft's search engine to Google's to power its search results. Yahoo Japan will also use Google's search advertising platform.

Microsoft has a broad search and advertising agreement with Yahoo in other parts of the world, but it doesn't extend to Yahoo Japan, which is majority-owned by a Japanese company, Softbank.

Microsoft said the deal will give Google "nearly complete control" of the Japanese search and search advertising markets. It compared it to a partnership that Google tried to strike with Yahoo two years ago in North America, but which they dropped because the Justice Department said it would probably be illegal.

Google insists the deal in Japan is different. Although Yahoo Japan will use Google's advertising platform, Google won't be providing the advertisements, Google said. And Yahoo Japan will be able to customize Google's search results and will continue to compete as an independent company, it said.

According to press reports from Tokyo, JFTC officials have said Google approached them about the deal before it was announced. The officials said they didn't see a problem so long as the companies run their businesses separately, the Wall Street Journal reported.

But Microsoft suggested in a blog post that the JFTC approved the deal without consulting advertisers, publisher and competitors to learn how it might affect competition. It is now going to ask it to reconsider its decision.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags advertisingantitrustYahooGoogleMicrosoftlegalinternetsearch engines

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?