The Japan Fair Trade Commission (JFTC) has accused Google of employing anti-competitive practices that allegedly hindered Yahoo Japan’s ability to compete in targeted search advertising, as reported by Bloomberg. The accusation revolves around Google’s alleged blocking of Yahoo Japan’s access to technologies aimed at generating revenue from targeted advertising on mobile devices during the period from 2015 to 2022.
Impact on Competition
JFTC spokesperson Saiko Nakajima informed reporters that Google’s actions significantly restricted competition in the market. Yahoo Japan, a subsidiary of LY Corporation, which also owns Japan’s prominent messaging app, Line, was notably affected. Nakajima stated that the regulatory body will remain vigilant, indicating the possibility of reopening the investigation against Google. As the situation evolves, we’ll keep you updated on any developments.
Google’s Response
In response to the allegations, Google has committed to making necessary adjustments to its practices. The JFTC disclosed that Google has pledged to grant Yahoo Japan access to keyword-targeted advertising technologies. Consequently, Google will not face fines for violating Japanese antitrust laws. Google’s assurance of changes aims to address concerns raised by Japanese regulators and promote fair competition in the market.
Overall, the situation underscores the importance of fair competition in the digital advertising landscape, concludes NIXSolutions. As regulatory scrutiny intensifies, companies like Google face increased pressure to uphold competitive standards. Stay tuned as we continue to monitor this story and provide updates on any further developments.