Mozilla, Yahoo Sue Each Other Over Firefox's Default Search

Mozilla, Yahoo Sue Each Other Over Firefox's Default Search

Now Mozilla has filed a counter complaint, stating that the switch back was in line with a deal struck between the two companies. If Yahoo's lawsuit succeeds, Mozilla will have to pay for the costs of the court case, prejudgment interest, and possible material damages as determined by the court.

Mozilla and Yahoo will soon face the courts after Yahoo was replaced the default search engine of Firefox.

Mozilla also says that Yahoo wanted to use "alternative branding" in order to prevent consumers from switching to other search engines. Google has been Mozilla's partner in other countries even though Mozilla has deals with Baidu in China and Yandex in Russian Federation.

Of course, Yahoo did not like this.

The story starts a few weeks back when Mozilla launched Firefox Quantum, a faster and more powerful browser that also doubles as a dishwasher tablet*.

Former Yahoo president and CEO Marissa Mayer left the company after the Verizon acquisition was completed, losing out on $14 million in bonus and award money based on investigations into the breaches.

After Verizon purchased Yahoo's Internet properties, including its search technology, Mozilla was dissatisfied with its commitment to improving search.

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"Despite Yahoo's representations and contractual obligations under the Strategic Agreement, Yahoo failed to deliver what it promised", Mozilla said in its lawsuit. Even if Mozilla did leave and make another deal, Yahoo was still required to pay the annual revenue guarantee of $375 million.

Mozilla did not feel that Verizon was a good match and chose to scrap the deal. Yahoo first filed a lawsuit against the developers of Firefox on December 1st, after what it considers as sufficient period for Mozilla to reverse its breach of contract. Mozilla was given a contractual right to terminate the agreement, if Yahoo was found unacceptable for some reason.

Mozilla's posted an explanation of its actions that explained it ended the deal "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", the company explained in a blog post yesterday. "Indeed, the parties anticipated that key elements of the negotiated deal to provide stability to Mozilla and to offset the high risk that Mozilla was taking by choosing Yahoo Search as the default search provider". It has also said that it had to take the decision to remove Yahoo as the default browser because continuing to use Yahoo as the default browser would have had a negative impact.

"No relationship should end this way - litigation doesn't further any goals for the ecosystem", she said.

While this is a legal matter and much of it is confidential, as Mozilla, we want to share as much information as we can in the spirit of our values of openness and transparency.

Mozilla looks to be in a very firm legal position here and has already demanded that Oath hand over $750 million to retain the contract.

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