Yahoo / Google Mobile-search: Blow for Microsoft

There are three search engine giants, Google, Microsoft and Yahoo, but in a strange twist Yahoo Japan Corp. has agreed to use Google’s Internet search technology. This move is seen as a huge blow for Microsoft and could have a number of implications when it comes to the mobile-search business.

This latest deal could help the Google Android smartphones do much better in Japan than the upcoming Windows 7 Phone will, and that is certainly a hard pill to swallow for Microsoft who agreed a ten-year deal with Yahoo! Inc. in the U.S. last year.

The reason why this is a blow to Microsoft is the fact that Japan is the second largest in this market, but that number is growing and could in time become the largest. However, this deal could also have a number of implications for Apple, as they are in a constant battle with Google over the market share of the mobile OS.

Google Android has been closing the gap all the time, and this latest Yahoo deal could be the tipping point. To get the full details of this story visit the WSJ’s All Things Digital blog