The Fair Trade Commission in Japan found out that Google had not kept them informed about changes made to a business agreement approved by the FTC. Google, after receiving approval for a tie-up with rival Yahoo Japan regarding technology for search advertising services, later restricted Yahoo's use of that technology for mobile sites, which led to the FTC feeling deceived and initiating an investigation in 2022.
Initially, the FTC had approved the partnership between Google and Yahoo Japan under the belief that it would allow Yahoo to operate independently. However, the power dynamics shifted four years later when Google demanded Yahoo to cease delivering search advertisements to smartphone sites that were not owned by Yahoo but utilized Google's technology. Despite the FTC's regular communication with both companies, the altered terms of the agreement went unnoticed, leaving the FTC unaware until they initiated the investigation.
The former senior FTC official mentioned that in 2010, there were doubts within the FTC about approving the tie-up, but the changing digital market was not fully understood or addressed at the time. After the administrative action against Google was announced, the company stated its commitment to follow the corrective action plan as approved by the FTC. Yahoo refrained from commenting on the situation, signaling the sensitivity and complexity of the issue surrounding the altered terms of the agreement between Google and Yahoo Japan.