Yahoo and Mozilla are suing each other over messy search engine deal

Yahoo and Mozilla are suing each other over messy search engine deal

While Mozilla emphasizes that the decision to replace Yahoo with Google was exclusively taken to improve the customer experience with the new version of the web browser, Yahoo has knocked the court's door with the hope of saving its limited customer base through the web browser.

Firefox users may be happy to see Google as the browser's default search engine again.

Yahoo Holdings and Oath, the company that runs the Yahoo search engine and which is owned by Verizon, filed a complaint against Mozilla on December 1 at the Superior Court for California, after Mozilla revealed it was changing its default search engine.

There's no doubt that Google offers faster and more precise results than Yahoo.

Summary: The new owner of Yahoo is getting into a legal battle with Mozilla over a poorly made contract by former CEO Marissa Mayer.

On Tuesday Mozilla filed a counter-claim in court and the document says that Mozilla took a high risk by choosing Yahoo as its default search provider so it followed contractual protections. Rather than focus on improving the quality of its search product, as Yahoo assured Mozilla it would prior to entering into the deal, Yahoo continually focused on short-term monetization and special events such as the Olympics and the election, at the expense of product quality.

Although there aren't any details available on the contract signed by the companies, Mozilla claims that the terms for termination were laid out clearly. Under the terms of the contract, which were revealed during Yahoo's sale process past year, the party that would acquire Yahoo would have to pay Mozilla $375 million annually through 2019.

Mayer did not think that such a thing would happen, but Yahoo's purchase by Verizon triggered the stipulation.

Mozilla terminated the agreement that it had in place with Yahoo in early November, with Yahoo having allegedly ceased payments after the end of October. Even if Mozilla did leave and make another deal, Yahoo was still required to pay the annual revenue guarantee of $375 million.

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. "The terms of our contract are clear and our post-termination rights under our contract with Yahoo should continue to be enforced", Mozilla legal head Denelle Dixon said in a statement. It stated that the company suffered and it demanded that Mozilla must pay for the damages to its business and reputation. Yahoo detailed how the foundation breached their agreement, although these reasons were redacted from the copy of the lawsuit released to the public. We enter into all of our relationships with a shared goal to deliver a great user experience and further the web as an open platform.

Last year, as Yahoo was preparing to sell up to Verizon, it emerged that there was quite a notable clause in the contract between Mozilla and Yahoo.

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