FTC to Take Action Against Google for Allegedly Impeding Yahoo's Search Advertising Business

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FTC to Take Action Against Google for Allegedly Impeding Yahoo's Search Advertising Business

## Google Faces Antitrust Action in Japan

The Fair Trade Commission (FTC) of Japan is expected to take its first administrative action against Google LLC based on the Anti-Monopoly Law. The FTC suspects Google of impeding Yahoo Japan's search advertising business for smartphone sites.

The investigation began in 2022 after concerns arose that Google's contract with Yahoo Japan restricted the latter's ability to compete in the mobile search advertising market. Google allegedly demanded that Yahoo stop delivering advertisements for smartphone sites, hindering Yahoo's growth in this area.

In response to the investigation, Google submitted a plan to the FTC this month outlining voluntary measures to halt the alleged anti-competitive practices and prevent future occurrences. The FTC is expected to soon announce the plan after certifying it as workable under its "commitment procedure."

This procedure allows the FTC to address suspected anti-competitive practices promptly without resorting to formal legal proceedings. Google has cooperated with the investigation and is awaiting the FTC's approval of its corrective plan.

The domestic market for keyword-targeted search advertising is estimated to be worth 1.07 trillion yen ($6.93 billion) as of 2023. Google dominates the market with a 70-80% share, while Yahoo holds the remaining portion. Since 2010, Yahoo has relied on Google's advertisement delivery technology for its search advertisement business outside its own websites.

If the FTC approves Google's commitment plan, the investigation will be closed without formally recognizing Google's behavior as a violation of the Anti-Monopoly Law. Google will be obligated to fulfill the measures outlined in its plan, and the FTC will not impose any fines or cease-and-desist orders.