Yahoo will begin offering "virtually unlimited storage" for its paid e-mail customers and will upgrade free users to 100MB, in a move to counter recent Google's 1G storage free Gmail offer.

Besides additional storage, the service will get additional enhancement including tie in more Yahoo-branded services, such as Photos and Messenger.

The competition between Yahoo and Google continues to heighten. In February, Yahoo dropped Google as its algorithmic search provider and instead launched its own technology. The companies also compete over distribution deals, as evidenced in Yahoo replacing Google search on CNN.com this week.

By: DocMemory
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