Microsoft is pissed that Yahoo Japan is going with Google rather than Bing. In fact, the company is reportedly moving to block the deal from going through.
Jay Yarow at Silicon Alley Insider provides the following statement from a company rep: "We plan to present evidence to the Japanese FTC explaining why we believe that this deal is substantially more harmful to competition than Google’s deal with Yahoo in 2008 that the DOJ found to be illegal."
According to Yarow, Microsoft estimates that Google and Yahoo joining forces in Japan would give the companies 98% of the Japanese search market.
Earlier this week, it was revealed that Yahoo Japan is turning to Google to power search engine listings. Naturally, with the highly publicized deal between Microsoft and Yahoo, this raised more than a few eyebrows, including Microsoft's.
The decision was ultimately not Yahoo's choice, however, as they actually do not control the majority of Yahoo Japan. SoftBankCorp, a Japanese ISP and cell phone provider controls 40% to Yahoo's 35%.
eWeek recently shared some words from both Microsoft and Google on the matter. Basically, Microsoft has called it anti-competitive, and Google has said it isn't. Google maintains that it will only license Yahoo Japan ad technology, rather than supplying ads.
Meanwhile, Microsoft's "Search Alliance" with Yahoo is already starting to take effect. Last week, Yahoo announced that it has begun testing organic and paid search listings from Microsoft, with up to 25% of its U.S. search traffic seeing Bing and adCenter results.
The company said it will be integrating Microsoft's mobile organic and paid listings in the U.S. and Canada in the coming months, and anticipates that U.S. and Canada organic listings in both the desktop and mobile versions of its search will be fully powered by Microsoft as early as August or September.