Mozilla Foundation’s decision to change the default search engine in its Firefox browser from Google to Yahoo in 2014 has been described as a “failed” bet that harmed the user experience, according to the company’s CEO, Mitchell Baker. Baker’s comments were made during a videotaped interview from 2022, which was played as part of Google’s defense in an antitrust trial conducted by the Justice Department. Both Google and the Justice Department have cited the Mozilla example to support their arguments in the case. The Justice Department claims that Google’s dominance as the default search engine on various devices has hindered competitors like Microsoft Corp. and DuckDuckGo. On the other hand, Google argues that users prefer its services and have the option to switch if desired.
Baker revealed that Yahoo agreed to pay Mozilla at least $375 million, surpassing Google’s offer of $276 million per year. Yahoo also promised to reduce the number of ads and limit user tracking, but eventually reneged on these promises and began showing more advertising. As a result, Mozilla decided to switch back to using Google as its default search engine in 2017, renewing the agreement in 2020. Baker also acknowledged that her salary is partly linked to Mozilla’s yearly revenue, and she received a higher income after renewing the agreement with Google.
Baker explained that during the years when Yahoo was the default search engine, the number of users who remained with Firefox noticeably declined. However, she clarified that this decline was not necessarily due to the search engine switch, although it did coincide with it. Users expressed a clear preference for Google, prompting Mozilla to make the change back to its previous default search engine.
Firefox, unlike other browsers, allows users to easily switch between different search engines, including Yahoo, Google, Microsoft’s Bing, and DuckDuckGo. Despite this feature, Baker emphasized that “our users made it clear that they look for and want and expect Google.”
At its peak, Firefox held a 32% market share in the US for desktop computers, with Google’s payments accounting for approximately 90% of Mozilla’s revenues in 2012 and 2013. Baker didn’t disclose the current amount Google pays Mozilla, but she confirmed it is in the hundreds of millions of dollars per year, exceeding the previous peak market share period.
Mozilla faces challenges in competing for users on mobile devices due to the default settings of Chrome and Safari on Android phones and iPhones. Baker stated that merely having an app in the app store is not enough to compete with the preloaded defaults, as users have to consciously choose and make an effort to use a different product.
In an attempt to increase competition and explore options, Mozilla is experimenting with redirecting certain search queries to Bing instead of Google. Baker believes that more competition in the search market would benefit Mozilla when their agreements come up for renewal.
Overall, the Mozilla Foundation’s decision to switch its default search engine to Yahoo was deemed a failure, leading to a decline in user satisfaction and a subsequent return to Google as the preferred search engine. The case between Google and the Justice Department continues, with the Mozilla example serving as a notable reference point for both sides.
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