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UPDATED 22:39 EST / JANUARY 08 2015

Yahoo CEO Marissa Mayer NEWS

Google loses market share to Yahoo following Firefox deal

Yahoo CEO Marissa Mayer

Google Inc.’s market share of the search market dropped to its lowest level since 2008 in December on the back of the Mozilla Foundations switch to Yahoo as its default search provider in Firefox.

According to analytics firm StatCounter, Google’s slice of the U.S. search market fell to 75.2 percent  in December, down from 79.3 percent for the same period last year, while Yahoo’s share grew to 10.4 percent, up 3 percentage points from its 7.4 percent market share a year ago.

The figures gave Google its smallest share of the American search market since 2008, and Yahoo its biggest share since 2009.

As we reported December 4th, Yahoo usage on Firefox tripled after the company released Firefox 34; Yahoo usage was 29.4 percent compared to 9.6 percent for Firefox 33. Google search usage by Firefox users dropped from 82.1 percent to 63.5 percent as they upgraded to the new version.

The deal between Yahoo and Mozilla dates to November 2014, and although the circumstances were never officially confirmed, Google either abandoned a renewed deal with Mozilla, or a keen Yahoo run by CEO Marissa Mayer simply out bid Google for the rights.

The increase in Yahoo’s market share has gone as far as it will, claims Search Engine Lands Danny Sullivan, who told Bloomberg “I doubt Google needs to worry. For one, that’s probably the high water mark…Unless Firefox suddenly grows share, everyone who likely could get switched has been now. And Google might claw back even the small share gone.”

It is good news for Yahoo, but the market overall is still a case of an archaic dysfunctional David, in the form of Yahoo, taking on the Goliath that is Google.

photo credit: JessOsorio10 via photopin cc

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