Microsoft Slams Google-Yahoo Japan Deal - InformationWeek
Cloud // Software as a Service
10:41 AM
Moving UEBA Beyond the Ground Floor
Sep 20, 2017
This webinar will provide the details you need about UEBA so you can make the decisions on how bes ...Read More>>

Microsoft Slams Google-Yahoo Japan Deal

Redmond says pact would reduce the number of online advertising platforms in the country to one.

Microsoft said Google's search alliance with Japan, which on Wednesday gained preliminary approval from Japanese authorities, is an anticompetitive arrangement that will hurt online search and advertising customers in the Pacific Rim nation.

"The proposed deal will eliminate search competition in Japan—in paid advertising and natural search results," said Microsoft general counsel Dave Heiner, in a blog post.

Yahoo Japan on Tuesday announced that it agreed to farm out search and advertising on its Web sites to Google. U.S.-based Yahoo Inc., which has a search alliance with Microsoft, holds a 32% stake in Yahoo Japan but does not control the company. Yahoo Japan is majority-owned by Softbank.

Heiner likened Google's deal with Yahoo Japan to its earlier efforts to forge a similar deal with Yahoo Inc., a move that was struck down by U.S. antitrust watchdogs.

"History seems to be repeating itself, now on the other side of the Pacific. The two main search advertising platforms in Japan are run by Google and Yahoo Japan," Heiner wrote in his blog post. "Google plans to replace Yahoo Japan's search advertising platform with its own, reducing the number of ad platforms in Japan to just one," Heiner said.

"The proposed deal will eliminate search competition in Japan—in paid advertising and natural search results," Heiner added. Google controls 51% of the Japanese search market, while Yahoo Japan holds a 47% stake. Microsoft's complaints appear to be falling on deaf ears.

Japanese antitrust authorities on Wednesday appeared to OK the deal because Google and Yahoo Japan will continue to operate as independent entities.

"Based on those conditions, the partnership wouldn't immediately cause any problems related to antitrust regulations," said Takahide Matsuyama, secretary-general of Japan's Fair Trade Commission, at a news conference. Still, Matsuyama said Japan's FTC would continue to monitor the arrangement, according to The Wall Street Journal.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll