## Google Faces Antitrust Action in Japan
The Fair Trade Commission (FTC) of Japan is preparing to take its first administrative action against Google LLC based on the Anti-Monopoly Law. The FTC suspects Google of impeding rival Yahoo Japan's search advertising business.
The investigation, which began in 2022, centers on a contract between Google and Yahoo Japan. The FTC believes this contract restricted Yahoo Japan's ability to deliver search advertisements for smartphone websites, potentially violating antitrust laws.
In response to the investigation, Google submitted a plan to the FTC this month. This plan outlines voluntary measures to halt the alleged anti-competitive practices and prevent their recurrence.
The FTC is expected to approve Google's plan under its "commitment procedure," a process introduced in 2018 to address suspected anti-competitive practices promptly.
Google has cooperated with the FTC's investigation and is awaiting the commission's decision on its corrective plan.
The Japanese search advertising market 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 Japan holds the remaining share.
Since 2010, Yahoo Japan has relied on Google's advertisement delivery technology for its search advertisement business on websites other than its own. In the mid-2010s, Google demanded that Yahoo Japan stop delivering advertisements for smartphone sites. Yahoo Japan, dependent on Google's technology, complied with this demand.
Following the FTC's investigation, Google retracted its demand against Yahoo Japan in 2022.
If the FTC approves Google's commitment plan, the investigation will be closed without recognizing Google's behavior as a violation of the Anti-Monopoly Law. Google will be obligated to fulfill the measures outlined in its plan. The FTC will not issue a cease-and-desist order or a surcharge payment order, which are typically imposed as penalties for antitrust violations.