Yahoo Japan is considering terminating its agreement with Google.

Yahoo and Google's contract is set to expire at the end of March 2025. To decide whether to renew it, the Japanese company has begun an internal technical review.

Yahoo Japan website interface (Photo: Nikkei)

Z Holdings – the owner of Yahoo Japan – announced plans to merge Yahoo and LINE in October and form a new company, LINE Yahoo. LINE Yahoo's major shareholder is Naver, a South Korean internet service provider that holds over 60% of the domestic search market.

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Naver is looking to develop its AI-generated integrated search technology for export to Japan and other countries where LINE is popular. Observers will wait to see if Yahoo Japan switches its search engine provider from Google to Naver.

According to Z Holdings, Yahoo signed a contract with Google Asia Pacific in July 2020. Under the agreement, Yahoo Japan is free to develop and integrate additional features to differentiate its search results from competitors.

Yahoo began testing some of its services, such as search, in mid-May, according to Nikkei. The company is testing the impact of the search engine change by conducting a small number of searches under unusual conditions.

The Japanese government is also monitoring the impact of Yahoo's search contractor change. With the rapid development of AI-integrated search engines, it could affect user privacy protection and economic security.

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