In Tests, Yahoo Uses Google to Power Search Results and Ads
According to the NY Times, Yahoo and Google have begun testing using Google's search ads for a small portion of Yahoo's desktop and mobile web search results. Yahoo had previously had a 10 year exclusive deal with Microsoft, but in April the two companies renegotiated their partnership allowing Yahoo to work with other search providers. Any search deal between Yahoo and Google is likely to come under antitrust scrutiny, as in 2008 the Justice Department banned the two technology companies from making a deal.
In 2008, the Justice Department blocked Yahoo from making a deal with Google to provide the search ads for Yahoo’s web search efforts.

Now, Yahoo and Google are exploring a new relationship in which Yahoo would use Google for some regular search results as well as search ads.

Yahoo confirmed on Wednesday that it has begun testing the use of Google search ads for a small portion of its desktop and mobile web search results. “As we work to create the absolute best experiences for Yahoo users, from time to time, we run small tests with a variety of partners including search providers,” the company said in a statement. “There is nothing further to share at this time.”

Google also confirmed the arrangement.

The tests were first uncovered by Aaron Wall, founder of SEO Book, a site that helps companies improve their rankings in web searches.

Yahoo got the right to work with other search providers in April, when it renegotiated its partnership with Microsoft, whose Bing search service had been the exclusive provider of search results and ads to Yahoo under a 10-year partnership between the companies. Under the revised deal, Yahoo can use its own search technology or that of other providers for up to 49 percent of its search results.

Marissa Mayer, Yahoo’s chief executive, oversaw search products at Google earlier in her career. However, until now, she has signaled that she was focused on developing new search products at Yahoo rather than turning to her old employer for help. She has also been aggressive at getting Yahoo’s search engine bundled into third-party products, like Mozilla’s Firefox web browser and Oracle’s Java software.

Any broad search deal between Yahoo and Google is likely to come under antitrust scrutiny. Google already handles most web searches worldwide, and the European Commission has a formal antitrust case pending against it, alleging it has abused its dominant position.