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06 December 2011, 09:53

Google and Mozilla deal still ongoing

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Google logo Reports that Google had terminated the search and advertising deal which brought in the majority of Mozilla's funds have been denied by both parties. The deal, which formally ended in November, places Google as the default search option in the Firefox browser. With the formal expiry of the deal and no announcement of a renewal, some commentators ran stories that the deal was not being renewed. This would have lead to a massive funding gap for the non-profit foundation.

Both Mozilla and Google have now responded to those claims. Mozilla says the companies are still in active negotiations, noting that "Our search relationship with Google remains positive for both of us", but that they "have nothing further to announce at this time". Google itself says that although it normally doesn't disclose business agreement terms, it "can confirm that we still have an agreement with Mozilla", but also has "nothing new to share at this time".

Mozilla logo Since the start of the recently expired three-year old deal, the relationship between Google and Mozilla has become more complex. Google's entry into the browser market with Chrome has been a remarkable success for the search engine company. Recent statistics show that Chrome has drawn level in terms of market share with Mozilla's Firefox browser, leading to questions over whether Google would continue funding competition to its own browser.

In 2010, Mozilla's financial statement showed the non-profit foundation's revenue was $123 million. Of that, around 84 per cent of the income came from "a contract with a search engine provider". Mozilla says "search partnerships will remain a solid generator of revenue" for the foundation and has been trying to expand its sources of revenue. In October, it launched with Microsoft a version of Firefox which used Microsoft's Bing search engine, expanding on a year-old partnership with the company.


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