Microsoft is not too pleased with the newly minted four-year search pact between Google and Yahoo in Japan. Microsoft's David Heiner, said "Google reports that it already received approval from Japanese FTC for the deal, even before it was announced and before JFTC reached out to advertisers, publishers and competitors to learn about likely competitive effects of the deal. It'll be interesting to see over next few weeks if that's really accurate."
"Today Google accounts for about 51% of paid search advertising in Japan. Yahoo Japan accounts for 47%. Their combined share of natural search results is almost as high. If Google is permitted to proceed with its plan, it would gain nearly complete control over search and search advertising in Japan through contract, not organic growth. (emphasis added) Google alone "would decide what consumers in Japan will find, or not find, on the Web". And Google will obtain massive amounts of data regarding the search history and Web sites visited by every consumer, business and government agency that conducts Web searches," said David.