Google LLC has come under scrutiny by Japan's Fair Trade Commission for its alleged anti-competitive behavior towards a Japanese rival in the search advertising industry. The FTC identified Google's demand that Yahoo Japan Corp. cease delivering search advertisements to smartphone sites other than its own in 2014 as a violation of the Anti-Monopoly Law.
Following an investigation and pressure from the FTC, Google retracted its demand, allowing Yahoo to resume its services. Google submitted a voluntary corrective plan to the FTC, committing not to limit its technology provision to Yahoo without FTC approval for the next three years. Additionally, Google agreed to undergo regular audits by external experts and report on compliance with the plan's measures over the same period.
The Fair Trade Commission stated that it will closely monitor Google's adherence to the corrective plan over the coming years and may reopen its investigation if the company fails to meet its obligations. Despite Google's dominance in the search advertising market in Japan, the FTC's action does not include traditional punitive measures like cease-and-desist or surcharge payment orders. The search advertising market in Japan is estimated to be valued at 1.07 trillion yen, with Google holding a significant share compared to its sole rival, Yahoo.