When you’ve been in this space long enough, you get a chance to see history repeating itself so when Yahoo announced a search deal for Google to power Yahoo search results, there was a strong element of deja vu involved. Back in 2000 nearly the same deal was announced.
But here in the present, Google will provide web search results, search ads and image search services for an unspecified number of Yahoo user queries, on desktop and mobile platforms.
According to the regulatory filing, the non-exclusive deal, renegotiated nearly 6 years earlier between Yahoo and Microsoft, allows Yahoo to continue work with multiple partners.
Here’s an excerpt from the filing describing Yahoo’s agreement with Google.
“On October 19, 2015, Yahoo! Inc., a Delaware corporation (“Yahoo”), and Google Inc., a Delaware corporation (“Google”), entered into a Google Services Agreement (the “Services Agreement”). The Services Agreement is effective as of October 1, 2015 and expires on December 31, 2018. Pursuant to the Services Agreement, Google will provide Yahoo with search advertisements through Google’s AdSense for Search service (“AFS”), web algorithmic search services through Google’s Websearch Service, and image search services. The results provided by Google for these services will be available to Yahoo for display on both desktop and mobile platforms. Yahoo may use Google’s services on Yahoo’s owned and operated properties (“Yahoo Properties”) and on certain syndication partner properties (“Affiliate Sites”) in the United States (U.S.), Canada, Hong Kong, Taiwan, Singapore, Thailand, Vietnam, Philippines, Indonesia, Malaysia, India, Middle East, Africa, Mexico, Argentina, Brazil, Colombia, Chile, Venezuela, Peru, Australia and New Zealand.
Under the Services Agreement, Yahoo has discretion to select which search queries to send to Google and is not obligated to send any minimum number of search queries. The Services Agreement is non-exclusive and expressly permits Yahoo to use any other search advertising services, including its own service, the services of Microsoft Corporation or other third parties.”
The regulatory filing notes that Yahoo and Google “have agreed to certain procedures with the Antitrust Division of the United States Department of Justice” to review the agreement, “including delaying the implementation of the Services Agreement in the U.S. in order to provide the DOJ with a reasonable period of review.” Antitrust problems derailed an earlier deal reached by Google and Yahoo back in 2008.
The EU and India may also voice potential regulatory concerns as well.
Google dominates the U.S. search market, with nearly 63 percent of the search market, compared to 21 percent for Microsoft and 12 percent for Yahoo. Yahoo’s market share has slipped regularly since signing the original deal with Microsoft.