Yahoo’s parent company, Oath (Verizon) has filed a complaint against Mozilla for breach of contract. Three years ago, the two companies Yahoo and Firefox unveiled that Yahoo would be the default search engine on Firefox in the U.S., Canada, Hong Kong and Taiwan. But when Mozilla last month launched the Firefox Quantum, a major update to the browser with Google as the default search provider, both the companies ended their partnership.
When Mozilla announced that it is changing its default search engine, Yahoo sued Mozilla with the Superior Court of California on Dec 1.
That deal was little beneficial to Mozilla as it allowed the company to receive an annual payment of $375 million through 2019.
Yahoo said that it asked Mozilla to take immediate steps to repair its violations and revoke its termination notice.
The complaint says, “Yahoo has suffered and will continue to suffer a competitive injury to its business and reputation, among other harm.”
On Tuesday Mozilla filed a counter-claim in court and the document says that Mozilla took a high risk by choosing Yahoo as its default search provider so it followed contractual protections.
Its complaint says,” The payments owed by Yahoo are key to financing Mozilla’s efforts to launch the new version of its flagship product, Firefox.”
The document also claims that Yahoo pulled downed Firefox usage and failed to improve the search engine of the company.
Oath, the company that runs the Yahoo search engine and which is owned by Verizon is not commenting on Mozilla’s counter-claim.