Yahoo-Google deal in Japan to be challenged by Microsoft: report

By Besta Shankar: Subscribe to Besta's

July 30, 2010 12:29 PM EDT

Reacting to the Yahoo! Japan’s deal with Google, Microsoft is preparing to take up the issue with Fair Trade Commission (FTC) in Japan pitching the deal as anti-competitive, Economic Times reported citing sources in Japan.

According to the report, FTC said that deal is not to subject to anti-monopoly law and Microsoft opposed the deal as it makes Google to total control of the search market roughly.

Recently, Yahoo! Japan announced a deal to switch to Google's search engine technology from its own technology. As per the deal, Yahoo! Japan will use Google's online advertising and distribution system, in return Google will be provided access to data on online shopping trends.

The deal was expected to create a monopoly in the Japanese market, the third-largest for search queries.

Currently, Yahoo! Japan dominates the search market in Japan with around 57 percent while Google has 37 percent. Microsoft with a share of less than 3 percent is far behind the two.

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The deal is a major setback for software giant Microsoft, which formed an internet search deal with Yahoo! Inc last year to boost competition with Google, which has two-thirds of the global market.

Microsoft’s Bing technology is expected to power Yahoo in the U.S. by the end of the year, as well as in other markets.

This article is copyrighted by International Business Times, the business news leader
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