Google has found itself in hot water once again, this time in Japan. The country’s Fair Trade Commission (FTC) has accused the tech giant of using anti-competitive tactics by preventing Yahoo Japan from accessing crucial technology necessary for generating targeted ad revenue from mobile searches. According to the FTC, Google engaged in this behavior from 2015 to 2022.
It wasn’t until the FTC flagged the issues that Google finally changed its behavior. Bloomberg reported that Google committed to giving Yahoo Japan access to keyword-tied targeted advertising technology. However, the damage may already be done. Any practices that impact an advertiser’s choice or limit access to targeting technologies can lead to increased advertising costs.
This is a significant development as it marks the FTC’s first-ever administrative action against Alphabet, Google’s parent company. However, no penalties have been imposed at this time. The Japanese watchdog will continue to closely monitor the situation and retains the right to reopen its investigation into Google. Additionally, they are investigating Alphabet’s potential influence on local smartphone makers to prioritize its search services on their devices, further intensifying scrutiny of the tech behemoth’s practices.
Meanwhile, in the United States, we are still awaiting the verdict of the U.S. vs. Google antitrust trial. One aspect of the trial focused on whether Google used its search ad tools to give its competitors an unfair advantage. Similar accusations of anti-competitive behavior have been leveled against Google in different parts of the world, highlighting the growing concerns surrounding the company’s practices.
As the investigation continues in Japan and the U.S. awaits the outcome of its own trial, it is clear that Google’s actions are under immense scrutiny. The implications of these allegations could have far-reaching consequences for the company’s reputation and potentially even its business practices.
In conclusion, Google’s alleged anti-competitive tactics in Japan have put the company in a precarious position. The FTC’s administrative action marks a significant development, and the ongoing investigations in both Japan and the United States highlight the growing concerns surrounding Google’s practices. As the tech giant navigates these legal challenges, the future of its advertising practices and influence on the market hang in the balance.
