Google Obligated to Abide by Corrective Action Plan in Japan
The Fair Trade Commission (FTC) in Japan has obligated Google LLC to abide by its corrective action plan over suspicions that it unfairly restricted a Japanese rival's search advertising business. This marks the first administrative action against the U.S. search engine giant based on the Anti-Monopoly Law.
The FTC certified Google's plan as workable after an investigation revealed that Google had demanded Yahoo Japan Corp. stop delivering search advertisements to smartphone sites other than its own in November 2014. This effectively prevented Yahoo from delivering such advertisements from September 2015 onwards.
Following the FTC's investigation, Google retracted its demand, allowing Yahoo to resume its services in November 2022. Google submitted a voluntary plan to the FTC earlier this month under the commission's "commitment procedure," which aims to promptly address suspected anti-competitive practices.
In its commitment plan, Google pledged not to restrict provision of its technology to Yahoo for the next three years unless authorized by the FTC. Additionally, Google agreed to accept regular audits by outside experts and report the status of compliance with the measures included in its plan for three years.
The FTC will continue to monitor Google's operations and may reopen its investigation if the company fails to fulfill its obligations. However, it will not issue a cease-and-desist order or a surcharge payment order, which are typically imposed as punishment for anti-competitive practices.
This case highlights the FTC's efforts to ensure fair competition in the Japanese market, particularly in the dominant search advertising sector. With Google holding a significant market share, the FTC's actions aim to protect smaller competitors and promote a level playing field.