Microsoft rebranded its search engine as Bing in 2009, gaining market share from Yahoo but not Google. Microsoft and Yahoo later formed an alliance where Microsoft handles search queries and ads on Yahoo sites. Meanwhile, Google grew its presence in mobile and netbooks with the launches of Android and Chrome OS.

1. Update on M icrosoft and the search mar ket
Since the time of the case, there have been a few important developments. While both the case and case
discussion take the perspective of Microsoft in 2008, it is useful that everyone is more or less on the same
page on what has happened since.
First, Microsoft rebranded its search services and launched it under the name Bing in May of 2009. While
the new Bing service has some differentiating features, such as a partial preview of the search results, a
beautiful homepage, and a different way to order results, it remains similar to Google's. Bing's market
share has climbed from 8.0% at its launch in May to 11.3% in January 2010, but its gains have been
mostly at the expense of Yahoo, whose share declined from 20.1% to 17.0% over the same time span.
Google's market share nudged up from 65.0% in May 2009 to 65.4% in January 2010, although that was a
slight decline from its 65.7% market share in December 2009.
The second development is that Microsoft and Yahoo forged an alliance that was recently approved by
both the DOJ and the European Commission. Under the deal, Microsoft will handle all search queries on
Yahoo's web properties though Yahoo remains in control of the user experience, i.e., how the results will
be presented and combined with other content. Microsoft will also handle the self-service search ads, with
Yahoo receiving 88% of the revenue. Microsoft finally also gets access to Yahoo's search technology and
can integrate it into Bing.
Google has not been sitting still. It launched an operating system for mobile phones, Android, that was
well received in the market and quickly gained market share. It also promised to launch an operating
system for the fast growing segments of netbooks, called Chrome OS.