The search engine giant Google and Mozilla Firefox have extended their agreement to keep Google the default search engine in the Firefox browser until at least 2023, according to a source. Firefox’s spokesperson Justin O’Kelly stated,
Mozilla’s search partnership with Google is ongoing, with Google as the default search provider in the Firefox browser in many places around the world. We’ve recently extended the partnership, and the relationship isn’t changing.
Mozilla Firefox and Google To Extend their Agreement Till 2023
The two companies have not formally proclaimed the deal, which is estimated to value between $400 and $450 million per year. It is expected that the formal announcement of the deal would take place later this year. The current agreement was due to expire at the end of 2020.
The decision comes as Mozilla stated plans to lay off nearly 250 employees, representing about a quarter of its workforce. The CEO of Mozilla Firefox, Mitchell Baker wrote in a blog post that the COVID-19 pandemic had “significantly impacted our revenue.” In a blog post announcing the changes, Baker quoted that the company would focus on developing new products “that people love and want to use,” restore its focus on community, and recognize new revenue streams. The company also laid off about 70 people in January 2020.
A major portion of Mozilla’s revenue originates from search engine companies like Google along with Yandex in Russia and Baidu in China that compensate for their search engines to become the default option in Mozilla Firefox. Since 2010, Firefox’s share of the browser market has witnessed a decline, and in that time, many larger products, like Firefox phone and Firefox OS, never came to success.