Google Agrees to Corrective Action Plan by Japan's Fair Trade Commission

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Google Agrees to Corrective Action Plan by Japan's Fair Trade Commission

At the Consumer Electronics Show in Las Vegas in January, the logo of Google LLC was prominently displayed. Subsequently, the Fair Trade Commission of Japan issued a directive to Google to comply with a corrective action plan regarding alleged unfair restrictions imposed on a Japanese competitor's search advertising business. This action by the commission represents the initial administrative move against the U.S.-based search engine giant under Japan's Anti-Monopoly Law.

Yahoo Japan Corp. had been offering keyword-targeted search advertising services utilizing Google's technology following an online advertising collaboration established in 2010. However, the FTC revealed that in November 2014, Google had instructed the Japanese internet service provider to cease delivering search advertisements to mobile sites that were not operated by Google. As a result, starting from September 2015, Yahoo, now part of LY Corp. after merging with Line Corp., was unable to provide such advertisements. Following an investigation by the FTC prompted by the Anti-Monopoly Law, Google retracted its demand, allowing Yahoo to recommence its services in November 2022.

Subsequently, Google presented a voluntary commitment plan to the FTC earlier this month, falling under the commission's "commitment procedure" aimed at quickly addressing suspected anti-competitive behaviors. As part of this plan, Google pledged not to limit the provision of its technology to Yahoo for the next three years without FTC authorization. Additionally, the company committed to undergoing regular assessments by external experts and reporting the compliance status with the outlined measures over the same period. The FTC emphasized its intention to closely monitor Google's activities and initiate a renewed inquiry under the Anti-Monopoly Law if the company fails to meet its commitments, signaling ongoing scrutiny of the situation.