Google Comes to Mozilla’s Aid, but That May End

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By Douglas A. McIntyre Published
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Is Google (NASDAQ: GOOG) just a good citizen, or is there a reason it supports nonprofit operation Mozilla, which operates the Firefox browser? Google has a browser of its own — Chrome. And Chrome has gained substantial ground on industry leader Microsoft’s (NASDAQ: MSFT) Internet Explorer.

AllThingsD reports that Google will pay Mozilla $300 million per year to be the default search engine for Firefox over the next three years. Therein lies Google’s incentive. But it is one that naturally collides with the search company’s own goals to rule the browser market.

Microsoft and Yahoo! (NASDAQ: YHOO) apparently each made offers to be Firefox’s default search partner, but Google wrote the largest check.

The news demonstrates the fine line that Google is willing to walk as it tries to keep and increase market share in both the search and browser markets. The Mozilla deal shows that search still trumps browser. The relationship may reverse itself over time though, depending on what Google expects from Chrome.

The real battle over browser market share may end up being on smartphone and tablet devices. Google has a natural advantage because people often use the browser on their portable devices that they use on their PCs. Chrome may be a Trojan Horse for Google’s other products like maps and mail. It is still not clear what all of Google’s hidden intents are for mobile versions of Chrome.

The Google deal with Mozilla is short, even in quickly passing internet years. It may be the last one between the two organizations. The browser carries with it features and functions Google may need more and more in its battle with Microsoft’s huge suite of products. Eventually Mozilla may no longer be an important strategic partner for Google.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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