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Microsoft, Yahoo Amend Search Deal

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Microsoft and Yahoo  have tweaked their partnership to give Yahoo more wiggle room.

The amended agreement, signed by Microsoft CEO Satya Nadella and Yahoo CEO Marissa Mayer, has two main elements. First up, Yahoo will now be allowed to have more “flexibility to enhance the search experience” across mobile and desktop devices. In addition, the companies have modified their handling of ad sales, with Microsoft now exclusively handling the Bing ads on Yahoo Search and Yahoo continuing to sell ads through its own Gemini ads platform.

“We firmly believe that search is still in its infancy — and this partnership marks the next chapter in our exploration of how to make search truly great,” Mayer said in a statement Thursday.

The update to the search deal comes six years into a 10-year pact between the companies. In 2009, the companies’ then-CEOs — Microsoft’s Steve Ballmer and Yahoo’s Carol Bartz — signed a deal that would see Micorosoft’s Bing platform power Yahoo search. In return, Yahoo would be the exclusive sales force for ads and would receive a significant sum each year to be the brains behind Yahoo search.

At the time, both companies said that the deal represented a “significant opportunity” and some analysts suggested it was an attempt on Microsoft’s part to get closer to Google on search usage and drive more revenue through online advertising.

As of March, Microsoft’s Bing owned 8.1 percent of the worldwide search market, just topping Yahoo’s 7.7 percent share, according to data from research firm NetMarketShare. Google, the companies’ chief competitor, owned 62.3 percent of the market.

Yahoo could, however, see its share grow in the coming years. In November, one of the world’s most popular browsers — Mozilla’s Firefox — tossed aside Google Search as its default browser, tapping Yahoo for the position instead. In February, StatCounter, another company that measures search market share, said that Yahoo saw an uptick in searches following the Firefox deal.

Under the terms of the original deal, Yahoo would get 88 percent of the search revenue generated by its sites during the first five years.

Though it was unclear at the time how significant that would be to Yahoo, a regulatory filing in 2013 showed that 31 percent of the company’s revenue in just one quarter in 2013 was generated through its Microsoft partnership. Microsoft has been less forthcoming with its revelations on revenue generated through the deal.

The new deal between the companies comes at a crucial time for both firms. Mayer, who came to Yahoo from search giant Google, is in the process of transforming the company into one that’s friendlier to mobile devices and more capable of generating revenue off those products.

Mayer is also keenly aware of Yahoo’s slumping position in the online world, which has driven her to make dozens of major acquisitions over the years.

Nadella, meanwhile, has refocused Microsoft on services and mobile, and becoming platform-agnostic with its many platforms, including Office.

Under Nadella’s leadership, Microsoft has attempted to make clear that it no longer views itself as a software company, but rather a cloud services and mobile firm that provides software.

The company demonstrated that when it announced that it would offer Windows 10, its upcoming operating system, for free.

Microsoft has historically sold new Windows versions for hundreds of dollars to drive revenue and profits. Nadella sees his company’s future in other areas.

Few details on the new Yahoo-Microsoft agreement were released. In a statement on her company’s blog Thursday, Mayer would only say that the deal “opens up significant opportunities in our partnership, enabling both partners to improve the search experience, create value for advertisers, and establish ongoing stability for partners.”

That said, Yahoo did note that the original structure of the companies’ deal, including how Microsoft would handle search and the revenue-sharing agreement between the companies — “remains unchanged with today’s updates.”

That ingredient — that the revenue-sharing hasn’t changed — could be an important piece of the puzzle for Yahoo. In a statement to CNET on Thursday, research firm eMarketer said that Yahoo is having some trouble holding its ground in the worldwide search advertising space. The company’s share of the global search ad revenue market will reach 2.3 percent in 2015, down from its 2.5 percent share in 2014 and 2.9 percent in 2013. Microsoft, meanwhile, is expected to maintain its search ad share at 4.2 percent this year, matching last year’s figure and up from 3.7 percent in 2013. The companies will therefore combine to own 6.5 percent of the $81.6 billion search ad market, according to eMarketer.


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E-Business

South Korea Joins List of Countries Banning DeepSeek over Security Concerns

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South Korean authorities have temporarily blocked new downloads of the DeepSeek artificial intelligence (AI) app, citing concerns over the company’s handling of user data.

South Korea Joins List of Countries Banning DeepSeek over Security Concerns

The country’s Personal Information Protection Commission (PIPC) announced the decision on Monday, saying that the Chinese AI startup had failed to fully comply with South Korea’s data protection laws.

According to PIPC, DeepSeek recently appointed legal representatives in South Korea and admitted to partially neglecting regulatory considerations regarding user privacy.

“The Chinese startup appointed legal representatives last week in South Korea and had acknowledged partially neglecting considerations of the country’s data protection law,” the PIPC said.

The commission added that the app’s service would resume once the company implements improvements in accordance with national privacy laws.

According to Reuters, when asked about South Korea’s move, a spokesperson for China’s foreign ministry said the Chinese government prioritises data privacy and security, ensuring compliance with legal standards.

The spokesperson also said China does not require companies or individuals to collect or store data in violation of laws.

The ban follows similar actions by other governments.

On February 4, Australia prohibited the use of DeepSeek on government devices due to security concerns.

Italy’s privacy regulator recently blocked the AI service, citing the company’s failure to address data policy issues.

Taiwan has also warned about potential risks related to cross-border data transmission and information leaks.

Also, regulators in Ireland and France have launched investigations into DeepSeek’s data-handling practices.

DeepSeek gained global adoption for its advanced human-like reasoning capabilities and open-source model.

In January, it surpassed OpenAI’s Chatgpt as the most downloaded free app on the Apple store.

 

 


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AU Endorses Nigeria as AfCFTA Digital Trade Champion

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The African Union (AU) has officially designated Nigeria as the Digital Trade Champion under the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol, citing the country’s leadership in digital enterprise and innovation.

The endorsement came at the 38th Ordinary Session of the Assembly of Heads of State and Government, which concluded on Sunday in Addis Ababa.

Nigeria’s proactive role in advancing the digital trade protocol, adopted in February 2024, was a key factor in the decision.

The AfCFTA Digital Trade Protocol encompasses eight annexes covering crucial areas such as rules of origin, digital identities, cross-border data transfers, online safety, and financial technology. The protocol is expected to provide a robust framework for Africa’s digital economy.

According to a statement issued on Monday by Special Adviser to the President on Information and Strategy, Bayo Onanuga, former President of Niger Republic and AU AfCFTA Champion, Mahamadou Issoufou, praised Nigeria’s leadership, particularly for convening the Digital Economy Roundtable in January.

“No organization, region, or continent has negotiated or adopted such a comprehensive legal instrument on digital trade, positioning the African continent to benefit from the digital economy for innovation and job creation,” Issoufou said in his progress report to the AU Assembly.

He also highlighted Africa’s growing influence in digital innovation, particularly in mobile banking and financial technology, and noted that the protocol would create an enabling environment for young African entrepreneurs.

“The AfCFTA Protocol on Digital Trade will establish a conducive environment for these young people to fully participate in Africa’s digital economy,” Issoufou added.

Reflecting on the roundtable in Abuja, he commended President Bola Tinubu and his administration for facilitating discussions with key stakeholders.

“The Roundtable was attended by young pioneers in Fintech, mobile banking and other areas of the digital economy. It was evident from the discussions that young people are eager to take advantage of Africa’s digital economy through the AfCFTA Protocol on Digital Trade”, he said.

Speaking at the AU summit, Nigeria’s Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, described the AU’s endorsement as a milestone in Africa’s economic development.

“Africa has demonstrated global leadership by pioneering the first-of-its-kind AfCFTA Protocol on Digital Trade—establishing a comprehensive regulatory framework,” Dr. Oduwole stated.

She emphasized that the protocol is a “game changer” for the continent, predicting that it would generate millions of jobs, contribute billions to Africa’s GDP, and attract significant investments in digital infrastructure.

 


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Schmidt, Ex Google Chief Says AI Risky in Terrorist Hands

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Eric Schmidt, former Google CEO
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Eric Schmidt, former Google CEO has expressed concerns about the extreme risks posed by artificial intelligence (AI) falling into the hands of terrorists or rogue states.

Schmidt, Ex Google Chief Says AI Risky in Terrorist Hands

Eric Schmidt, former Google CEO

He warned that nations such as North Korea, Iran, and Russia could adopt AI technologies to develop weapons capable of causing significant harm, including biological weapons.

Schmidt urged governments to oversee private tech companies, emphasising, “The real fears I have are not the ones most people discuss about AI, I talk about extreme risk.”

“I’m always worried about an ‘Osama Bin Laden’ scenario, where truly evil individuals take control of some aspect of modern life to harm innocent people,” he added.

With private companies driving AI advancements, he stressed the need for careful government monitoring and regulation. “It’s really important that governments understand what we’re doing and keep their eye on us,” he said.

His remarks followed a two-day AI summit in Paris, where the UK and the U.S. declined to sign a communiqué outlining the future direction of AI. The declaration on “inclusive and sustainable artificial intelligence for people and the planet” was endorsed by 57 countries, including India, China, the Vatican, the EU, and the African Union Commission.

The UK justified its decision, stating that the agreement lacked “practical clarity” on global AI governance and national security concerns.

Schmidt supports U.S. export controls restricting the sale of advanced AI microchips to certain countries, aiming to slow adversaries’ progress in AI research.

He also highlights the importance of international collaboration on AI safety, suggesting that cooperation with nations like China is essential to addressing global AI challenges.

 

 


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