Mozilla CEO Mitchell Baker called Firefox’s 2014 switch from Google to Yahoo search a “failed” bet in a videotaped interview played by Google’s defence during the ongoing antitrust trial against the search giant.
As detailed by Bloomberg, the 2022 interview with Baker detailed why Mozilla made the switch to Yahoo and what ultimately came of it. According to Baker, Mozilla made the switch in 2014 after Yahoo CEO Marissa Mayer promised “to make a big bet on us.”
However, Baker says “that bet failed” and that “the search experience that Yahoo was providing to Firefox users deteriorated.”
Baker explained that Yahoo agreed to pay Mozilla at least $375 million USD ($516.6 million CAD) per year, which was more than the $276 million USD ($380.22 million CAD) that Google offered at the time. Yahoo also agreed to reduce the number of ads and reduce user tracking compared to Google. But over time, Yahoo went back on its offer and started showing more advertising. Mozilla ultimately went back to Google in 2017 and later renewed its agreement in 2020.
Moreover, Baker acknowledged that her salary is partly tied to Mozilla’s yearly revenue and that she made $2.5 million USD ($3.45 million CAD) in 2020 and more than that in 2021, following the renewed agreement with Google. Baker didn’t disclose how much Google currently pays Mozilla, though recent reports put the figure between $400 million and $450 million USD (roughly $535 million to $602 million CAD) per year.
Baker also said that Firefox saw a noticeable decline in users during the years when Yahoo was the default search engine, though she said it wasn’t necessarily because of the switch. Firefox offers a feature to easily let users switch search engines, but that didn’t help stave off user decline.
“Our users made it clear that they look for and want and expect Google,” Baker said.
However, Google isn’t the only one using Mozilla to push its case. The U.S. Justice Department has cited Mozilla in its arguments. It says that Google’s large payments to maintain default status across phones, laptops, and more have unfairly forced out potential competitors.
Baker echoed the sentiment somewhat, saying that Mozilla has had difficulty competing for users on mobile thanks to the default position of Chrome and Safari.
“Merely having an app in the app store is a very difficult way to compete with the preloaded defaults,” Baker said.
Baker also said that Mozilla looks at the options available when its agreements are up for renewal and that “competition in the search market would help us.”
Source: Bloomberg
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