Google Agrees to Corrective Action Plan in Japan to Address Antitrust Concerns

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Google Agrees to Corrective Action Plan in Japan to Address Antitrust Concerns

Google Agrees to Corrective Action Plan in Japan

The Fair Trade Commission (FTC) in Japan has certified a corrective action plan submitted by Google LLC, resolving concerns that the tech giant unfairly restricted a Japanese rival's search advertising business. This marks the first administrative action against Google in Japan based on the Anti-Monopoly Law.

The FTC's investigation revealed that Google, in November 2014, demanded Yahoo Japan Corp. stop delivering search advertisements to smartphone sites other than its own. This effectively prevented Yahoo from competing with Google in the mobile search advertising market.

Following the FTC's investigation, Google retracted its demand, and Yahoo was able to resume its services in November 2022. To ensure future compliance, Google submitted a voluntary plan to the FTC under the "commitment procedure."

Not restrict provision of its technology to Yahoo for the next three years, unless authorized by the FTC.

Accept regular audits by outside experts.

Report the status of compliance with the measures included in its plan for three years.

The FTC will closely monitor Google's operations and 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 for anti-competitive practices.

This case highlights the FTC's commitment to ensuring fair competition in the digital market. It also underscores the importance of companies complying with antitrust laws to avoid potential legal consequences.