Google Faces Antitrust Action in Japan
The Fair Trade Commission (FTC) 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 ads for smartphone sites, and Yahoo, reliant on Google's technology, complied.
In response to the investigation, Google submitted a plan to the FTC outlining voluntary measures to halt the alleged anti-competitive practices and prevent future occurrences. The FTC is expected to approve this plan under its "commitment procedure," which allows for swift resolution of suspected antitrust violations.
The FTC's investigation highlights concerns about Google's dominance in the search advertising market. According to a 2021 FTC report, Google held a 70-80% market share, with Yahoo holding the remaining portion. This dominance raises concerns about fair competition and consumer choice.
If the FTC approves Google's commitment plan, the investigation will conclude without formally recognizing Google's actions as a violation of the Anti-Monopoly Law. However, Google will be obligated to fulfill the measures outlined in the plan, ensuring a more competitive landscape for mobile search advertising.