considering the fact that Google would dominate the internet market and post a threat to free competition once Yahoo Japan adopts Google’s search and advertising technologies.

 

Microsoft had voiced concerns about the deal almost as soon as it was announced since it would give Google too much control over Japan’s search and search advertising market.

 

But Google argued that Yahoo Japan will use Google’s advertising platform without Google providing any advertisements, and Yahoo Japan will be able to customize Google’s search results and will continue to compete as an independent company. And facing the questions, Yahoo Japan also insisted that it will remain competitive with Google Inc. even after adopting Google’s Internet search engine and online and technology because the two firms will use their own editing and adverting policies.

 

Yahoo Japan considered using Bing Microsoft search platform, but Google is one step ahead of Bing in Japanese language search services. Bing launched its Japanese search services in July and has yet to initiate a search-linked advertising platform in Japan.

 

The Japan Fair Trade Commission (JFTC) declared that the tieup between Yahoo Japan and Google of the United States will have no immediate problem with Japan’s antimonopoly law after the investigation response to requests by Microsoft and Rakuten. It says that it doesn’t foresee any problems as long as the two companies continues as separate entities and offer distinctive services, which also means they will keep checking for possible violations.

 

Microsoft argued then that the arrangement would actually give Google closer to 100 percent of search in Japan, sparking a major anticompetitive issue. The software giant, whose search engine Yahoo Japan said it was not powerful enough to pick, maintained its argument in a statement.

 

"Microsoft is disappointed that the JFTC decided not to initiate a formal investigation to review the proposed Google-Yahoo Japan deal. In the months since this agreement was announced, it has become clear that there is significant industry and public concern, particularly given the fact that Google will control nearly 100 percent of the Japanese search and search advertising market." Microsoft said Japan's approval means it will have to think about its business plans in Japan going forward.

 

Google argued that the Japanese FTC's ruling is sound because Yahoo Japan will also continue to compete as an independent search and ad company.

 

"We believe this is the correct outcome for a number of reasons, including the fact that the license will be non-exclusive, and both parties will be free to explore better products and services and work with third parties as they see fit," according to a spokesperson.

 

"Competition between Google and Yahoo Japan, as well as others in the online advertising market, will remain vigorous because our advertising operations will stay independent of one another, and there is competition with other online advertising service providers."

 

By utilizing the Google’s search engine, Yahoo Japan hopes to optimize its business resources. Yahoo Inc., which owns 34.7 percent of Yahoo Japan and is its second-largest stakeholder, suspended development of its search technology and now utilizes rival Microsoft Corp.’s Bing search engine, hoping to catch up with Google-the leader in U.S. Internet search market.

 

Even if technology comes from a rival company, "we'll use anything that benefits us," Yahoo Japan President Masahiro Inoue said. His comment shows Yahoo Japan's willingness to do whatever it takes to survive in the Internet industry.

 

 

 

 Maggie Zhang joined iTV-Asia in September 2010.  She is originally from Henan, China and is “Content Coordinator” for Japan.  She is focused on a number of industries including advertising, energy, entertainment, finance, food & beverage, media and real estate.  Maggie is new to Shanghai and is exploring and learning about this great city.  She can be reached at maggie.zhang@itv-asia.com.