Google facing antitrust probe in Japan over unfair trade practices
What's the story
The Japan Fair Trade Commission (JFTC) has slapped a "cease and desist" order on Google for unfair trade practices, concerning its search services on Android devices.
The step aligns with similar crackdowns on firms in the UK and the US.
The JFTC claims that Google violated Japan's anti-monopoly law by forcing Android device manufacturers to give priority to its own search apps and services through licensing agreements.
Concerns
Google's licensing agreements under scrutiny
While Google develops the Android OS, it is separate manufacturing firms like Samsung that make handheld Android products (smartphones/tablets).
In order to let these manufacturers preinstall Google apps on their devices (including the Play Store), licensing agreements are required.
However, JFTC claims Google has also used these licenses to force manufacturers into preinstalling and prominently featuring its search engine and Chrome browser on their devices.
Law breach
Google's actions seen as violation of anti-monopoly law
The JFTC says that Google enforced at least six such agreements with Android manufacturers by December 2024.
Such agreements are considered a violation of Japan's anti-monopoly law, which forbids businesses from trading on restrictive terms that unfairly hinder transaction partners' business activities.
The Commission first announced its investigation into Google on October 23, 2023, and approved a commitment plan from the tech giant in April 2024, addressing some anti-competitive concerns.
Tougher stance
JFTC's order marks a tougher stance against Google
The "cease and desist" order marks a tougher stance by the Japanese government and its first action against a US tech giant.
The move comes as the world increasingly cracks down on Google for anti-competitive practices.
The JFTC worked with other overseas competition watchdogs familiar with investigating Google.
Last year, a federal US judge ruled that Google had an illegal monopoly in the search market, due to exclusive search arrangements on Android devices and Apple's iPhones.
Order
Google ordered to make these changes
As part of its cease and desist order, JFTC has ordered Google to stop mandating its own services to be installed and prominently featured on smartphones. The tech giant has also been ordered to ease restrictive conditions for advertising revenue distribution, giving manufacturers more options.