Yahoo Japan has just announced that they are going to start using Google search technologies on their search engine.

This was a surprising development considering Yahoo has entered in a deal with Microsoft to use their Bing search engine for their search service in USA, Canada and other international markets.

Microsoft has now stated that Yahoo-Google deal in Japan is not a good development for the web users in Japan.

A company representative said:

Google’s plan would cement its position as essentially the sole provider of search results in Japan for years to come.

The proposed deal will eliminate search competition in Japan — in paid advertising and natural search results.

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.

Google alone would decide what consumers in Japan will find, or not find, on the Web.

It is important to note here that Yahoo owns a minority stake in Yahoo Japan venture. Softbank owns a larger stake in the company.