This is probably the most amazing thing to happen in SEO for a long time, Google has given one of it’s sites a PageRank penalty for buying links.
Most people probably heard about Google Japan paying bloggers to write posts about them earlier in the week. The posts had disclosure but the links were not nofollow links.
Hobo Web points to a Twitter message from Matt Cutts confirming the penalty:

I doubt Google Japan will lose any search traffic because of this.
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Linkbait maybe from Google.jp?
there getting plenty of links now!!
Oh noooes!
Seriously, what difference will this make, if any, to Google Japan? Really doesn’t seem like much of a punishment. However, it does go to show how crazy it is that Google USA (who seem to be the daddies here) expect every business on the internet to ensure all of their their sponsored links on are nofollowed, when they can’t even manage it themselves without a load of SEOs pointing it out to them.
It will be just a PR (as in public relations) type thing to keep everybody happy. I doubt they will loose any search traffic like you say.
Yep pure public relations. I imagine traffic to Google.co.jp will rocket as everyone checks the PageRank.
There getting plenty of links now!!!
Remember folks it is a reduction only in the REPORTED PageRank, not the actual PageRank. This is Google’s way of demotivating the purchase of links from a site because their PR appears to be lower than it actually is, therefore deflating the market that site has for selling them. Google – or rather Mr Cutts – reported previously that it isn’t an actual penalty.
I think it’s a great story and whether a real action has been taken against Google Japan or not, I highly doubt it will have any effect…other than to again raise the issue and remind people that they can also be penalised by selling text links.
I’m curious if Google Japan would really care
By that I mean, is Google Japan first in the marketplace or are they struggling to make inroads there?
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