[/caption]Reuters is reporting that Yahoo Japan, the country's largest Internet portal, has dealt a severe blow to Microsoft’s search endeavors when it chose Google to execute its' searches.
This hookup between Yahoo and Google will give the latter control of 90% of the Internet traffic in the second biggest economy behind that of the United States. This deal between Yahoo Japan - one third of which is owned by Yahoo Inc - and Google is surprising, because Yahoo Inc and Google were prevented from coming together for fearing a virtual monopoly in the search industry.
Yahoo Japan is already number one in search, but the company thinks that its' joint venture with Google will better secure that number one position…with the added bonus of using its' search-linked advertisements and supplying the other Google sites.
Microsoft is claiming that this deal is akin to giving a monopoly to Google, and effectively stifling competition in this lucrative area of search.
Yahoo Japan President Masahiro Inoue sees it differently. He claimed that Microsoft’s search technology was not strong enough for its needs, highlighting Yahoo Japan's language search capabilities.
The Japanese government is said to have deem the deal between Yahoo Japan and Google as not being in violation of its' antitrust laws. Microsoft, with all its protests about the deal, is not threatening legal action to thwart the joint venture between the two.
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