Mozilla And Yahoo! Sue Each Other Over Firefox Quantum's Switch To Google

Google Search is the most widely-used search engine of the web, and probably has the best search engines have to give.

Firefox users may be happy to see Google's return as the web browser's default search engine again. But the move has sparked a legal battle between the browser's developer, Mozilla, and Yahoo!.

The two companies are suing each other over a 2014 deal by former Yahoo! CEO Marrisa Mayer that made Yahoo! the default search engine for Firefox. While the deal benefits Firefox in some ways, the deal included Mozilla in dumping Yahoo! if another company acquired Yahoo!, and Mozilla found that the new partner to be not suitable.

This deal allowed Mozilla to back out, and Yahoo! isn't liking that decision.

Mozilla is said to terminate the deal, and triggered the company's contractual rights, following Verizon's acquisition of Yahoo!. This moment also came as Mozilla launched Firefox Quantum, a major update to the browser that has been earning positive reviews.

Google had been Mozilla's longtime search provider. Mozilla also has deals with Yandex in Russia and Baidu in China.

Mozilla's legal head Denelle Dixon, said:

"We recently exercised our contractual right to terminate our agreement with Yahoo based on a number of factors including doing what’s best for our brand, our effort to provide quality web search, and the broader content experience for our users."

"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."

"The terms of our contract are clear and our post-termination rights under our contract with Yahoo should continue to be enforced. 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. No relationship should end this way — litigation doesn’t further any goals for the ecosystem. Still, we are proud of how we conducted our business and product work throughout the relationship, how we handled the termination of the agreement, and we are confident in our legal positions."

Mozilla detailed the decision in a blog post, saying that it spent months studying how the new Verizon-owned Yahoo! might affect Firefox's web search, user experience, and also its brand.

It concluded that sticking with Yahoo! would have had a "negative impact."

In response, Yahoo Holdings and Oath (owned by Verizon), filed a legal complaint against Mozilla in a California court, claiming Mozilla in breaching the contract. "Yahoo! has suffered and will continue to suffer competitive injury to its business and reputation, among other harm," the complaint said. The lawsuit demands Mozilla to pay for damages.

Mozilla then filed a counter-claim in court, forcing Yahoo! to hold up the terms of the deal, and pay up.

Under terms of a contract, whoever acquired Yahoo! was required to pay Mozilla annual payments of $375 million through 2019.

At that time Mozilla switched to Yahoo! from Google after Mayer offered a more lucrative deal that included an unprecedented term to protect Mozilla in a change-of-control scenario. But this was a scenario that Mayer never thought would happen, which is why she agreed to the massive amount of deal.

According to the change-of-control term, Mozilla had the right to leave the partnership if - under its sole discretion and in a certain time period - it did not deem the new partner acceptable. And if it did that, even if it got another search deal, Yahoo! was still obligated to pay out annual revenue guarantees of $375 million.

"The payments owed by Yahoo! are key to financing Mozilla's efforts to launch the new version of its flagship product, Firefox," the counter-complaint said.

The document adds that Mozilla took a high risk by choosing Yahoo! as its default search provider, so it sought for "contractual protections." Mozilla also blames Yahoo! for dragging down Firefox usage, by failing to improve the company's search engine.

What's more, Mozilla is also concerned about Verizon's ability to protect user privacy, citing Verizon's $7.4 million settlement with the FCC in 2014 for using customers' personal data for marketing purposes without their consent.

"Verizon's policy positions are also diametrically opposed to Mozilla's positions on core issues such as net neutrality and cybersecurity," said the counter-complaint, as Mozilla is a big supporter of net neutrality.

Published: 
08/12/2017