Google forks out $300m to stay with Firefox

Sharply higher cost for the internet giant to remain the default search engine in Firefox.
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Google is set to pay around US$300 million a year for the right to remain the default search engine in the Mozilla Firefox browser, a huge increase compared to the previous deal.

Heightened interest from internet giants such as Microsoft and Yahoo was responsible for the better deal for browser developer Mozilla. The exact terms of the previous deal aren't known but Google contributed over $120 million to Mozilla's coffers last year and that was over 80 per cent of the firm's revenue.

"Under this multi-year agreement, Google Search will continue to be the default search provider for hundreds of millions of Firefox users around the world," said Mozilla chief Gary Kovacs.

With the Firefox deal in place, Google will remain the default search engine on something like 60 per cent of web browser market covered by Chrome, Firefox and Safari.