Chief Executive Eric Schmidt said last week it expects to announce soon a result of negotiations with Chinese representatives on the provision of a search engine uncensored for a country with 384 million Internet users. Censorship

A Google representative said yesterday that talks with the Chinese authorities have ended, but added that the company is adamant about not accepting self-censorship. “We have made clear that we will no longer self-censoring our search results,” the Google representative (Revealed Reuters on condition of anonymity because of company policy)

The China requires internet users to block words and images that the party deems unacceptable. “We always kept our prediction that, since Google announced it would not accept censorship, it is almost impossible to imagine a scenario in which Google does not say or act like the government to accept its position,” said Mark NATKIN, managing director of Marbridge Consulting, consultancy specializing in the Chinese technology.

Last Thursday facebook celebrated its sixth anniversary and announced it had 400 million users, Facebook has extended its cooperation with Microsoft.

The Redmond company makes managing advertisements in Facebook which has been handled so far under an agreement expiring in 2011. A “mutual” decision as stated Jon Tinter general manager Bing, Microsoft, however, continue to present advertisements related to the search results.

Consideration probably negotiated by Microsoft, Bing will now offer search engine exclusive service in the world. Microsoft has particular advantage in creating synergies with its own advertising social platforms Windows Live Hotmail, Xbox Live and MSN.

In addition, Microsoft will offer in coming weeks to further “experiments in-depth research. The Redmond Company suggests that the advice given by family and friends should play a leading role in this area. We can therefore expect to see social research landed shortly in Bing. Google has just started a beta test of its Social Search service, which presents search results from social networks to which the user subscribes.

Originally announced in July, the definitive Search and Advertising Services and Sales Agreement and License Agreement was dated to be finalized on 27th Oct but both the companies delayed the deal to work on the fine details and terms of the partnership.

About the deal:

Yahoo search would be powered with Bing technology or rightly stated as Yahoo! search engine would be replaced by Microsoft Bing for next 10-year under this “Microhoo” deal. The deal would let users Bing and decide for every search query they make using Yahoo search engine.

For first five years the deal declares Yahoo to keep 88% of the revenue from all search ad sales on its site and have the right to sell adverts on some Microsoft sites too. For the remaining five years yahoo would retain 93% of revenue earned.

The deal also declares Yahoo to maintain its own user interface but will have to feature “Powered by Bing” branding.

Yahoo looks forward to the partnership as it would significantly the cut cost company spend on the search technology and this would boost its profits and its stock price too.
Microsoft looks at it as a chance to increase its market share as Yahoo offers the best opportunity to overthrow present search giant Google.

The deal is still waiting to get clear signaling from the U.S. Department of Justice. Both the companies are positive about it and expect the partnership would get online by mid 2010 once it gets approved.

Bing’s outage prevented users to get to the site, and if they could, their queries were returning incomplete results page.

According to Satya Nadella, senior vice president of Microsoft’s online Service Division “As soon as the issue was detected, the change was rolled back, which caused the site to return to normal behavior. Unfortunately the detection and rollback took about half an hour”

As reported by Microsoft they are running a post mortem to upgrade their systems to prevent anything like this from happening again.

Microsoft, including this new search engine campaign, will be spending almost a million dollars a day on advertising. At the same time, they’ve been laying off thousands of workers who theoretically could be making their products better.

Google’s entire advertising budget for all of 2008 was $25 million, AdAge says. Microsoft is hoping a major ad push will take a chunk out of Google.

To convince Google users to try another brand of search, especially from perpetually uncool Microsoft, JWT’s new creative staff will need not only to differentiate Bing from Google, but to find a flaw in Google’s brand armor that can be cracked open.

Microsoft has struggled to match Google in terms of the relevance of its search results or to differentiate its service. “Live.com wasn’t good enough,” said Sandeep Aggarwal, an internet analyst at Collins Stewart. “We think the technology is finally ready for prime time.”

Microsoft refused to comment in detail on the revamp, but a spokesperson said: “Our goal is to provide people with a richer, more organised search experience that helps them accomplish their tasks. We have been hard at work on understanding consumer needs, and we believe there are big opportunities to add value to today’s search experience.”