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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared WRAPUP 8-BP gets 'wake-up call' and $32 bln in spill charges 27 Jul 2010 Passenger jet with 152 on board crashes in Pakistan 3:16am EDT Yahoo Japan to switch to Google's search engine 27 Jul 2010 Old Spice guy cast in Jennifer Aniston film 1:11am EDT Analysis: South China Sea spat fresh threat to Sino-US ties 27 Jul 2010 New health policy: encouraging friendships? 27 Jul 2010 Special Report: Is immigration a desert mirage for the GOP? 27 Jul 2010 BP gets "wake-up call" and $32 billion in spill charges | Video 12:40am EDT N Dakota, Alaska lead US job creation, study says 26 Jul 2010 UPDATE 2-Lufthansa cargo plane crashes at Saudi airport 27 Jul 2010 UPDATE 1-Canon says may raise camera sales forecast 20 Jul 2010 New health policy: encouraging friendships? 27 Jul 2010 WRAPUP 8-BP gets 'wake-up call' and $32 bln in spill charges 27 Jul 2010 Passenger jet with 152 on board crashes in Pakistan 3:16am EDT Yahoo Japan to switch to Google's search engine 27 Jul 2010 Winemakers shun social media grapevine 27 Jul 2010 Mental health experts ask: Will anyone be normal? 27 Jul 2010 Hackers to get eavesdropping lessons on cell calls 27 Jul 2010 Obama tells military: prepare for North Korea aggression 24 May 2010 Pollution makes quarter of China water unusable: ministry 26 Jul 2010 Yahoo Japan to switch to Google's search engine Digg This Tweet This Share on LinkedIn Share on Facebook Related News Analysis: Yahoo's Asia assets in investor spotlight Tue, Jul 27 2010 UPDATE 4-Yahoo Japan to switch to Google's search engine Tue, Jul 27 2010 Yahoo Japan says to adopt Google's search engine Tue, Jul 27 2010 Yahoo Japan says to adopt Google's search engine Tue, Jul 27 2010 Google unveils government version of software Mon, Jul 26 2010 Related Topics Technology » iPad » Media » A website of Yahoo Japan Corp is seen on a computer screen in Tokyo August 19, 2009. Credit: Reuters/Stringer By Nobuhiro Kubo TOKYO | Tue Jul 27, 2010 9:07pm EDT TOKYO (Reuters) - Yahoo Japan, Japan's largest Internet portal operator, will adopt Google's search engine, refusing to follow Yahoo Inc in choosing Microsoft as a partner. Yahoo Japan, which currently uses Yahoo Inc's search technology, and Google together would control almost all of the search market in the word's second-biggest economy. The deal stands in stark contrast to the decision by Yahoo Inc, which owns roughly one-third of Yahoo Japan, to integrate its search technology with Microsoft after the U.S. government blocked a tie-up with Google. Yahoo Japan, which hopes the deal will strengthen its No. 1 position in the domestic market, will also adopt Google's search-linked advertisement delivery system and feed its data to Google sites. The deal was seen by some as underscoring Microsoft's weaker position in search. Microsoft said the deal would hand the whole search market to Google and stifle competition. "If this Yahoo Japan and Google partnership works well, other search engine and portal site players all over the world may start adopting Google's technology," said Mitsushige Akino, chief fund manger at Ichiyoshi Investment Management. At a news conference, Yahoo Japan President Masahiro Inoue said the Japanese company concluded after a thorough investigation that Microsoft's search technology was not strong enough for its needs, citing Japanese language search capabilities as one example. Yahoo Japan shares gained 1.2 percent on reports of an imminent deal, while the broader market was flat. The announcement came after the close of trading hours. Yahoo Japan said in a statement Yahoo Inc will remain a strategic partner for the Japanese portal site and the U.S. company will maintain its stake. Yahoo Japan will still use the Yahoo brand. The Japanese company also said it has confirmed with the Japanese government that the partnership with Google will not violate antitrust regulations. Yahoo Inc, Yahoo Japan's second-biggest shareholder after Softbank Corp, signed a 10-year deal with Microsoft last year to save hundreds of millions of dollars a year in expenses by shifting Web indexing chores to Microsoft while Yahoo focuses on improving searching. Yahoo Inc executives have said the company expects to complete the search technology integration in all 59 countries in which it operates by the second quarter of 2012. Microsoft railed against the Yahoo-Google tie-up in Japan on Tuesday, but stopped short of saying it would challenge it legally. "This agreement is even more anti-competitive than Google's deal with Yahoo in the United States and Canada that the Department of Justice found to be illegal," said Microsoft's general counsel in a statement. "(That) deal would have locked up 90 percent of paid search advertising. This deal gives Google virtually 100 percent of all searches in Japan, both paid and unpaid. It means there will be no search competition in Japan and that Google will end up controlling all personal search information for all Japanese consumers and businesses." (Additional reporting by Benjamin Shatil, Yumiko Nishitani and Bill Rigby; Editing by Edwina Gibbs and Steve Orlofsky) Technology iPad Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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