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July 27, 2010 12:17 AM PDT

Yahoo Japan switches to Google search

by Stephen Shankland

If there was any doubt that Yahoo Japan is separate from Yahoo in the United States, let this dispel it: Yahoo Japan has signed a deal to use Google's search engine rather than Microsoft's.

The deal, reported Monday by All Things Digital, was confirmed later that day with a Google Japan blog post.

In the post, Daniel Alegre, vice president of Google's Asia Pacific and Japan operations, said Yahoo Japan will use Google search results and Google's technology for supplying the accompanying search ads. With such partnerships, revenue from the search ads is shared between the Web site and the company that supplies the ads, in this case Yahoo Japan and Google, respectively.

The deal is a blow to Microsoft, which has been working for years to match not just the utility of Google's market-leading search service, but also its scale. Yahoo plugged in Microsoft's Bing search engine to supply search results, but evidently Microsoft couldn't convince Yahoo Japan to follow suit in that prime market.

Yahoo is an investor in Yahoo Japan, but it's not the only one--Softbank holds a bigger share--so Yahoo Japan's decisions don't necessarily align with that of Yahoo.

Update, 11:28 a.m. PDT: In response to news of the deal, Microsoft cried foul and cited a failed Yahoo-Google tie-up in North America. In a statement, Brad Smith, Microsoft's general counsel, 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 2008 deal would have locked up 90 percent of paid search advertising. This deal gives Google virtually 100 percent of all searches in Japan, both paid and unpaid. It means there will be no search competition in Japan and that Google will end up controlling all personal search information for all Japanese consumers and businesses.

Stephen Shankland writes about a wide range of technology and products, but has a particular focus on browsers and digital photography. He joined CNET News in 1998 and since then also has covered Google, Yahoo, servers, supercomputing, Linux and open-source software, and science. E-mail Stephen, follow him on Twitter at http://www.twitter.com/stshank, or contact him through Google Buzz.
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Add a Comment (Log in or register) (16 Comments)
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by dicemoose July 27, 2010 12:49 AM PDT
The blog post states that Google will be providing their ad platform also.
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by Random_Walk July 27, 2010 6:52 AM PDT
Ouch... just... ouch.

If this keeps up (with other countries, maybe Ballmer should consider giving up. This whole thing with Bing, Yahoo!, and etc. is nothing more than a drain on Microsoft's cash. The money could be put to better use, IMHO. How so? They could've put the money into Courier for starters, or used it to push into becoming more vertically integrated. The whole search/ad thing makes money, sure - if you're the top dog. Otherwise it's a massive waste of cash.
by CTO_Dude July 27, 2010 11:11 AM PDT
@Random_Walk So while Bing has made significant inroads over the last year in search, Google has gained a fraction of actual paying customers on Google Docs. Doesnt the logic apply to them as well? Isnt it getting expensive for Google as well? Do you see Google rolling over on Office?
by Random_Walk July 27, 2010 11:38 AM PDT
"So while Bing has made significant inroads over the last year in search..."

Hint: They paid for those points - either by buying them from Yahoo, or by buying them directly from the consumer.

Not exactly a self-sustaining model there.
2 people like this comment
by chocota July 27, 2010 3:14 AM PDT
Yahoo dislikes Microsoft's culture and business practices, that's why they didn't allow Microsoft to lunch them when Microsoft tried to buy Yahoo, Microsoft gave up because they knew Yahoo top leaders were about to sabotage the transition if they succeeded buying Yahoo, something catastrophic for Microsoft, 44 Billions, maybe thrown to the toilet. Yahoo leaders have the same DNA of that of Google leaders, they are like brothers, they are from the same generation, they started their companies from their Universities projects, Yahoo invested after Google was founded. Later on Yahoo and Google tried to make a deal in the Search business, but that deal got opposition from government regulators and failed. Possible Yahoo was forced to make a Search deal with Microsoft because American financier and corporate RAIDER Carl Icahn was seated in the the Yahoo's Board Of Directors, this Corporate RAIDER expend billions of dollars in Yahoo's shares to try help Microsoft to buy Yahoo, but Yahoo didn't allow that to happened and Corporate RAIDER Carl Icahn ended up with a big hole in the POCKET. So that's not a surprise to me that Yahoo-Japan and Google make a Search deal and not with who Yahoo dislikes: Microsoft
Reply to this comment
by CTO_Dude July 27, 2010 5:53 AM PDT
What the heck are you talking about??!?!?!? Yahoo is still moving forward with its Microsoft deal. Yahoo Japan is an independent subsidiary. Get your facts straight before you start trolling.
1 person likes this comment
by Random_Walk July 27, 2010 6:55 AM PDT
Yahoo certainly is moving forward with the whole MSFT deal (just not in Japan, apparently), but this is beginning to get expensive.
1 person likes this comment
by chocota July 27, 2010 1:54 PM PDT
to CTO-DUDE
When Microsoft finally failed to buy Yahoo in 2008, Steve Ballmer was asked so many times by the media if they are going to try again, his answer was very straight, Microsoft will not try again, they desisted, they gave up, they were tired of Yahoo leaders opposing the deal by all means.. If Yahoo is allowing that kind of deal, it is much later after the deal failed in 2008, and it has to be seem if that happens.
Yes, Yahoo Japan, it is an independent company, where... Jerry Yang, one of the Yahoo co-founders and one of the Yahoo top leaders, is seating in its Board Of Directors, And Yahoo America has a 33% stake in Yahoo Japan.
Got that CTO-DUDE?? Get your facts straight before you start trolling.
by t8 July 27, 2010 5:00 AM PDT
Poor Yahoo. All they wanted was to partner with Google in search and they weren't allowed to. So they had to go with Microsoft's Bing. At least Japan shows what Yahoo would dearly love to do if they just could.

I also wonder if all the CCTLDs for Yahoo are free to choose Google or is it just Japan because of its share holding?
Reply to this comment
by OniOokamiAlfador July 27, 2010 5:42 AM PDT
"weren't allowed to?"

Please explain how yahoo was not "allowed" to partner with google. This should be amusing...
by Shankland July 27, 2010 6:11 AM PDT
@OniOokamiAlfador I suspect that @t8 is referring to the U.S. DOJ's antitrust authorities killing a proposed 2008 Yahoo-Google search-ad partnership by threatening to sue: http://news.cnet.com/8301-1023_3-10082800-93.html
by smrterthnu July 27, 2010 6:51 AM PDT
Has there been any word from the Japaneses government on whether they would approve this deal? Sounds like a serious case of a monopoly in Japan with well over 90% market share.
by Flip4o July 27, 2010 9:45 AM PDT
Well it'll go hand in hand with Microsoft's 90% desktop market share. Nobody seems to mind that one.

Ballmer needs to stop staring Google search down, his real enemies are Android and iOS.
2 people like this comment
by Mergatroid Mania July 27, 2010 11:44 AM PDT
Doesn't ts just make Yahoo Japan irrelevant? I mean, if they're going to use Google results, then why bother using Yahoo at all? Just go to Google in the first place.

I suppose this means Yahoo has given up on their own search engine with the North American company going with Bing and Japan going with Google?

Next thing you know Yahoo Japan will be using Google email, and Google app and Google downloads....

Maybe we should just call them Gooohoo.
Reply to this comment
by carlsf July 27, 2010 4:41 PM PDT
Comment MAYbe this will be "BINGS" BONG"

We tried BING and did not like the interface or the search results.

Google returns within on page what I/we were loking for with BING/BONG we have to go looking and that gets messy NOT GOOD.

We will be staying with GOOGLE at least that is our choice and NOT as with so many installs it you DONT read the fine print and unchech the tick boxes you all of a sudden have BING/BONG as you preferance and this is one of the main problems I have with BING, I dont want it and wont have it on our systems, yet MS thinks it has a god given right to install its BING/BONG they can p*** off.
Reply to this comment
by tohnoseika July 27, 2010 5:59 PM PDT
surprised!!0_0..how can Google replace YahooJP!!time's changing?
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About Deep Tech

Stephen Shankland, who's covered the computing industry since 1998 and was a science reporter before that, here delves into a wide range of technology trends and offers hands-on tests. His particular interests include Web browsers, cameras, standards, research, science, and start-ups.

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