Yahoo Japan has announced a deal with Google at its first-quarter earnings press conference (earnings report to be released today). Google algorithms will be powering its search engine, dissing Microsoft Bing’s search technology as it starts its global creep. The deal gives Yahoo and Google near-total dominance of the Japanese search market, and has already been deemed allowable by Japan’s Fair Trade Commission. As the front-end experience for Yahoo Japan users would remain unchanged, the newly forged alliance has been approved.

Yahoo Japan’s reasoning for shifting ties to Google was last year’s announcement of Microsoft’s deal with Yahoo. From the Wall Street Journal,

Yahoo Japan said it had been considering a move for almost a year after the announcement of Microsoft Corp’s deal to provide search engine technology to Yahoo Inc. in all the countries where it directly operates. This meant that Yahoo’s search engine technology and advertising systems that Yahoo Japan had been using would no longer be supported after the switch to Microsoft’s Bing service.

As Microsoft has about 3% of the search stake in Japan’s market, Bing’s absence in the country drove along Yahoo Japan’s decision to seek new partnership. Google’s 38% share of the Japanese search market, combined with Yahoo Japan’s 57% will maintain Yahoo Japan’s reach, which spans internet and mobile markets as well.

Yahoo Japan is actually controlled at 40% by Japanese internet and mobile service provider Softbank, while Yahoo Inc. has a 35% share. Yahoo Japan’s return to Google’s algorithms confirms Google’s global influence. Yahoo Japan said in a blog post that the new deal with Google will not impact its partnership with its U.S. counterpart, or its investments. Yahoo Japan’s stock rose 1.7% after the deal with Google was announced.