FTC files lawsuit against Google over search ad deal with Yahoo

The Japan Fair Trade Commission has required Google LLC to follow a corrective action plan over allegations that it unfairly restricted a Japanese competitor's search advertising business.

The FTC has found Google's plan to be viable, marking the first administrative action against a major US search engine under antitrust laws, commission officials announced on April 22.

Since partnering with Internet Advertising in 2010, Yahoo Japan Corporation has been providing keyword-targeted search advertising services based on Google technology.

According to the FTC, in November 2014, Google required Japanese internet service providers to stop serving search ads on smartphone sites other than its own.

Yahoo, which merged with LINE last year to form LY, has been unable to distribute such ads since September 2015 at the latest, officials said.

Following the FTC's antitrust investigation, Google withdrew its request, allowing Yahoo to resume service in November 2022, officials said.

Google filed a voluntary plan with the FTC earlier this month under the fee commitment process.

The process is a type of administrative action the FTC introduced in 2018 to expedite cases of suspected anticompetitive conduct.

In its commitment plan, Google said it would not restrict its technology offerings to Yahoo for the next three years unless authorized by the FTC.

Google also pledged to undergo regular audits by outside experts and report on its compliance with the plan's measures over a three-year period.

The FTC said it will continue to monitor Google's operations and will reopen an antitrust investigation if the company fails to meet its obligations.

No cease-and-desist orders or surcharge payment orders, which are normally imposed as punishment for anti-competitive conduct, will be issued.

The domestic search advertising market is estimated to be worth 1.7 trillion yen ($6.93 billion) as of 2023.

According to an FTC report released in 2021, as of 2019, Google dominated the market with a 70-80% share, with the remaining share held by its only rival, Yahoo.

(This article was written by Yuji Masuyama and Kyota Tanaka.)

Sources 1/ https://Google.com/ 2/ https://www.asahi.com/ajw/articles/15241468 The mention sources can contact us to remove/changing this article

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