Yahoo is Planing to use Google Technology in Japan

August 3, 2010 narendra Business, 0

yahoo_logo TOKYO – Yahoo Japan Corp is planning to use Google technology to use its search engine and search advertising system, while the corresponding address in the United States was derailed by regulators concerned about the monopoly. The decision said Tuesday the decision of Yahoo Japan, which operates separately from its namesake located in California, means that the majority of Internet searches made in Japan using the Google search engine instead of s. Yahoo Inc. 'Yahoo Japan and Google have said enough to preserve the independence of the competition will continue to maintain.

Yahoo Inc. to reduce costs because it lags behind Google Inc., already abandoned its own search service and has adopted the technology from its rival Microsoft Corp. Bing-search engine, in a transaction that was approved earlier in the year by U.S. and European supervisors after a seven month study. A proposed partnership between Yahoo and Google in the U.S. collapsed in 2008 after the U.S. Department of Justice has threatened to block for competitive reasons. The Fair Trade Commission of Japan has traditionally been considered more lenient than its American counterpart, even though it took action against Microsoft for violating antitrust laws in its contracts. Google currently dominates the world's Internet search market profit. It generates revenue by charging advertisers to display links with the search results. Few companies have the technology, user base and resources necessary to compete in research, and reducing the number of players have raised concerns about privacy and fair competition.

Top Microsoft lawyer blasted Google's proposed expansion in Japan as "more restrictive" than its failed alliance with Yahoo Inc. in the United States would have been. The agreement "means that there will be no competition for Research in Japan , and Google will eventually control all the data search for all Japanese consumers and businesses, "Brad Smith, Microsoft general counsel, said in a statement Tuesday. Japan's population using the Internet in the third world 2008, after the United States and China, according to Ministry of Foreign Affairs, with about 96 million users. A government study last year expected market access for search ads tied to PC growth 27 per cent over the next three years to nearly 200 billion yen (2.3 billion U.S. dollars). Yahoo Japan said Tuesday it had consulted with the Fair Trade Commission in Japan before the agreement has been announced, but details of the agreement were still being developed.

Google did not disclose financial details of Yahoo Japan is high, but the company has historically provided 51 percent partner in 85 percent of advertising revenue from its alliances. The U.S. alliance with Yahoo, Yahoo Microsoft claims 88 percent of advertising revenue from searches on its first five years of contracting companies. After a Tuesday research note, Citigroup analyst Mark Mahaney estimates Google receives about 100 million dollars annually to license Yahoo's search technology in Japan.

In Japan, Google and Yahoo Japan together accounted for more than 80 percent of total searches in June, according to measurement service Nielsen / NetRatings. This is one of the few countries where Google is not the market leader Yahoo Japan contends that the distinction, with a market share of around 50 percent. Unlike the United States and other countries, Yahoo is a major internet presence in Japan through a variety of online businesses, including research, auctions and shopping. Yahoo Japan said it had considered various search engines and ad systems and found that Google was the best for the Japanese market. He said the original agreement was for two years, which shall be automatically extended by two years if not opposed.

According to the agreement, the Japanese search engine Google will have access to the Yahoo Internet properties in Japan, including the popular auction and commerce sites. Yahoo Japan, a license for the Google search technology to a series from 2001-2004. Yahoo Inc. also once was based on the Google search technology since mid-2000 when Yahoo was even more influential than Google. The agreement, defeated in 2004, largely because Yahoo has decided it needed its own search engine to fight the growing power of Google. Yahoo Japan is a subsidiary of Softbank Corp., a major national Internet and mobile phone operator, which also has exclusive rights to sell the iPhone in the country. Softbank owns 40 percent of Yahoo Japan, while U.S. Yahoo Inc. holds 35 percent.

Shares of Yahoo Japan rose 1.2 percent in Tokyo trading Tuesday. The notification came after the market closed, but reports in the near future to address during the day.