Google Penalized Google for Paid Links

Interesting read over at Search Engine Land on Google penalizing Google Japan for paid links. Confirmed by Matt Cutts:

Matt Cutts twittered that Google.co.jp was penalized for paying for blogger reviews. If you look at the FriendFeed details, you will see Matt first said, “Google.co.jp PageRank is now ~5 instead of ~9. I expect that to remain for a while.” And then when he was questioned if this was a paid link penalty, he said “yes.”