## Google Faces Antitrust Action in Japan
The Fair Trade Commission (FTC) is poised to take its first administrative action against Google LLC under the Anti-Monopoly Law. The move comes after an investigation into Google's alleged interference with Yahoo Japan's search advertising business for smartphone sites.
The FTC has been investigating Google since 2022, suspecting that its contract with Yahoo Japan restricted the latter's ability to compete in the mobile search advertising market. Google is believed to have submitted a plan to the FTC this month, outlining voluntary measures to halt the alleged anti-competitive practices and prevent their recurrence.
The FTC is expected to soon announce its decision on the plan, using its "commitment procedure" to certify the plan's effectiveness. This procedure allows the antitrust watchdog to address suspected anti-competitive practices promptly.
Google has cooperated with the FTC's investigation and is awaiting the commission's approval of its corrective plan. The company has not yet commented on the specific details of the 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 been using Google's advertisement delivery technology for its search advertisement business for websites other than its own. In the mid-2010s, Google demanded that Yahoo stop delivering advertisements for smartphone sites. Yahoo, reliant on Google's technology, complied with the demand.
Google retracted the demand against Yahoo in 2022 following the FTC's investigation.
If the FTC approves Google's commitment plan, the investigation will be closed without formally recognizing the company'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.