Can Paid Links Affect Your PageRank?

It seems Google is really strict with their paid link rules & regulations. Google Japan lost its Page Rank and came down to PR 5 from PR9 because of paid links. This news is confirmed by Google’s own @mattcutts.

According to blogoscoped Google Japan was using pay-per-post service called CyberBuzz to review new Google widget and trick bloggers to write nice things about them.

Techcrunch also reported that it is really tough for Google to crack Yahoo! dominated japanese market.

Whether true or false, let me know in comments what you guys think about this issue??

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