Microsoft responds to Yahoo/Google deal

18/06/2008

Microsoft has acted swiftly in response to Yahoo's recent advertising deal with Google by announcing a new search technology centre (STC) will soon be established in an unnamed European location.

The announcement was made at yesterday's Cannes Lions International Advertising Festival.

Microsoft platforms and services division president Kevin Johnson said he hopes the move will help the company crack the European Market.

"Today Microsoft has 68 percent reach to Internet users throughout Europe through our online assets and strengths in display advertising; however, we’re not yet where we’d like to be in search in this critical geography," he said.

"Success in search in Europe is paramount, and we see the investment in this new search technology centre as an important step in doubling down on our long-term investments."

The aim of the new STC will be to replicate the success of a similar 2005 venture in Beijing, China, by giving Live Search customers a more relevant, localised and interactive search engine.

Although the exact location has yet to be announced, engineers are likely to be based in the UK, France and Germany.