Yahoo Japan said it will pick Google over Yahoo and Bing to power its search results in the future. The deal gives Google command of most of the search engine market in Japan, offsetting the loss of share in China to Baidu.
Yahoo Japan has chosen Google to power search and search advertising on its
portal, a blow against Yahoo at a time when the Web company has
its own search platform to Microsoft.
The largest Web portal in Japan,
Yahoo Japan is
a subsidiary of cell phone and Internet service provider Softbank, which has a
controlling 40 percent stake in the company.
Yahoo commands a 35 percent stake in Yahoo Japan.
This will not change as a result of the new search deal, which should take affect
by the end of the year, with the advertising system switch following in 2011.
What makes the new, non-exclusive arrangement so striking is that Yahoo has
powered search across Yahoo Japan's
properties to this point.
Yahoo Japan's decision to eschew incumbent Yahoo is a slap in the face to not
only Yahoo, but Microsoft as well. Yahoo is in the process
Microsoft's Bing search engine in the U.S.
and 58 other countries.
President Masahiro Inoue said in a press conference July 27 that Microsoft's
search technology was not sufficiently strong enough for its needs, according to
Google's search engine will also get access to data from Yahoo Japan's
auction and shopping sites.
While Google is powering Yahoo Japan's search advertising on the back end,
the portal will continue to acquire and develop advertising campaigns, according
to the blog
by Daniel Alegre, vice president of Asia Pacific and Japan for Google.
In securing Yahoo Japan's
search business, Google has scored a major coup. Together, the companies would
control most of the search market in Japan, the
third largest search market
after the U.S. and China.
The deal somewhat offsets Google's loss of search share to
Baidu in China, after the company stopped censoring search results due to a
disagreement with the country.