Mozilla And Yahoo Sue Each Other Over A Search Engine Deal

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Firefox Quantum Doubles Browser Speeds - Is It Faster Than Chrome?

Source: https://blog.mozilla.org/blog/2017/09/26/firefox-quantum-beta-developer-edition/

There’s no doubt that Google offers faster and more precise results than Yahoo. Compared with Yahoo, Google delivers more relevant data. That’s why most users of Firefox were happy to see that the browser has chosen Google as its default search engine again.

Unfortunately, this move started a legal battle between two tech giants — Mozilla and Yahoo. This battle can be traced back three years ago when the former Yahoo CEO, Marissa Mayer, agreed to a lucrative deal with Mozilla. That is, the browser would use Yahoo as its default search engine. The deal protected an improbable scenario.

The terms of that contract revealed that the company that would purchase Yahoo would pay Mozilla $375 million per year up to 2019. The payments were guaranteed until the time period.

Although the deal was favorable to Mozilla, the company decided to terminate the agreement and contractual rights after Verizon acquired Yahoo. This decision was made after the browser launched Firefox Quantum, which is a significant update to the said browser earning rave reviews.

Mozilla stated that it studied how Yahoo might affect Firefox’s web search and the user experience. After months of study, the company decided to leave Yahoo because it would make a negative impact on the brand.

“Immediately following Yahoo’s acquisition, we undertook a lengthy, multi-month process to seek assurances from Yahoo and its acquirers with respect to those factors. When it became clear that continuing to use Yahoo as our default search provider would have a negative impact on all of the above, we exercised our contractual right to terminate the agreement and entered into an agreement with another provider.” – Mozilla

As a result of Mozilla’s decision, Yahoo filed a complaint against the company. It stated that the company suffered and it demanded that Mozilla must pay for the damages to its business and reputation.

But Mozilla filed a counter-claim.

“The payments owed by Yahoo are significant to Mozilla for a number of reasons. The payments owed by Yahoo are key to financing Mozilla’s efforts to launch the new version of its flagship product, Firefox.” 

It added that Mozilla gambled by choosing Yahoo over other search providers. It blamed Yahoo for decreasing Firefox usage as it failed to enhance its search engine.

“Had Yahoo not breached the Strategic Agreement, the search functionality in Firefox would have been used more and the Firefox product itself would have more users, Mozilla would have been able to enter into a deal with a higher price following the termination of the Strategic Agreement, and there would have been relevant search alternatives in the marketplace, including Yahoo. The users and the revenue would have to be able to sustain and increase both Mozilla’s mission-oriented activities as well as its browser and Internet technology related product development.”

Mayer’s job as CEO at Yahoo involved a series of questionable decisions that made the company spent $3 billion on acquisitions and paid an ad man $109 million for more than a year of work. Now, she could add a costly deal with Mozilla that will surely haunt Yahoo for many years.


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Author: Jane Danes

Jane has a lifelong passion for writing. As a blogger, she loves writing breaking technology news and top headlines about gadgets, content marketing and online entrepreneurship and all things about social media. She also has a slight addiction to pizza and coffee.

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