A district judge has ordered Yahoo! Inc. (NASDAQ:YHOO) to offer Microsoft Corporation (NASDAQ:MSFT)’s Bing search in Taiwan and Hong Kong within a month. According to a court filing, Yahoo! Inc. (NASDAQ:YHOO) CEO Marissa Mayer had slowed the rollout of its Search Alliance with Microsoft Corporation (NASDAQ:MSFT) due to concerns over Microsoft’s commitment to the Alliance.
Yahoo CEO not happy with the search deal
Yahoo! Inc. (NASDAQ:YHOO) and Microsoft Corporation (NASDAQ:MSFT) forged their Search Alliance in 2009 in an attempt to challenge Google Inc (NASDAQ:GOOG)’s dominance in global search advertising. The widening gap between the two tech giants comes at a time when both are struggling to adapt to the shift from desktop to smartphones and tablets. The U.S. District Judge Robert Patterson Jr. ordered Yahoo to integrate Bing search technology in Hong Kong by November 11 and in Taiwan by October 28.
Yahoo! Inc (NASDAQ:YHOO) CEO Marissa Mayer has criticized the search partnership several times. The Sunnyvale, California-based company has rolled out the Search Alliance in 14 of 16 countries. On September 20, Marissa Mayer said she will not proceed with the rollout in the remaining two markets until she discusses the Alliance with Steve Ballmer’s successor. The Microsoft Corporation (NASDAQ:MSFT) CEO is set to retire within 10 months. But after the court order, Mayer has no choice.
Yahoo-Microsoft deal fails to achieve its objective
Microsoft Corporation (NASDAQ:MSFT) remains committed to the partnership. According to their agreements, the Seattle-based company would offer search technology to Yahoo! Inc. (NASDAQ:YHOO). In return, the Marissa Mayer-led company would get hefty payments to guarantee a fixed amount of revenue per search, according to Forbes. However, the amount Microsoft Corporation (NASDAQ:MSFT) pays to Yahoo! Inc. (NASDAQ:YHOO) has fallen consistently since the inception of the Alliance.
Unfortunately, their partnership has failed miserably to achieve its objective. Google Inc. (NASDAQ:GOOG) still rules global search market. It has more than 66% market share in the U.S., more than twice the combined market share of Yahoo! Inc. (NASDAQ:YHOO) and Microsoft Corporation (NASDAQ:MSFT) Since the two companies signed the search deal in 2010, their combined market share remains unchanged at less than 30%.
Yahoo! Inc. (NASDAQ:YHOO) shares were up 0.73% to $34.31 in early market trading.
