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Wednesday, 28th July 2010
In Business In Japan,

Microsoft criticises Yahoo! Japan deal

Software giant Microsoft has criticised a potential team-up between Yahoo! Japan and Google, which will see the former firm utilise the latter's search capabilities.

The move sees Microsoft replaced as Yahoo! Japan's main search partner and the company has now blasted the deal as "anticompetitive".

In a statement sent to reporters, Microsoft's general counsel Brad Smith said: "This agreement is even more anticompetitive than Google's deal with Yahoo! in the United States and Canada that the Department of Justice found to be illegal."

The move gives Google and Yahoo! Japan virtually a monopoly on the entire search market in the country. Unlike many other nations, where Google dominates, in Japan the top search engine is Yahoo! which has half of the market share - Google has just under 40 per cent.

An article in the Telegraph noted that the team-up has "surprised many in the technology world" as Yahoo! had recently seen a deal with Microsoft to use its Bing search engine approved by authorities. The agreement would have lasted for a decade.

Written by Mark Smith.

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