Japanese regulators on Tuesday issued a “cease and desist order” against Google for violation of the country’s anti-monopoly laws.
As per the order, Japan’s Fair Trade Commission (JFTC) has directed the tech giant to halt practices that violate Japan’s anti-monopoly law and prohibits the company from requiring manufacturers to preinstall its apps.
It also directs Google to establish clear action guidelines to ensure compliance with the law.
This marks the first time the South Asian nation has taken such action against a global tech firm, mirroring similar regulatory moves in the U.S. and Europe.
Google’s bundling under fire
Google was also found to have shared a portion of its advertising revenue with manufacturers under the condition that they met certain requirements — such as setting Google Chrome as the default browser and refraining from pre-installing rival search engine apps.
The regulator has accused Google of imposing binding conditions on Android smartphone manufacturers in the country since at least July 2020.
As per the JFTC, the global tech giant ensured that its online app store, Google Play, was bundled with its Chrome browser and search app.
A government source told AFP in December that Google Play is so essential that, without it, “Android devices are basically unsellable.”
While no financial penalties were announced on Tuesday, Nakajima said that the order would expand the choices available to smartphone makers.
“We have concluded that Google LLC’s conduct threatens to impede fair competition,” Saiko Nakajima, a senior official at the JFTC, said.
“This will encourage competition and benefit society,” she added.
Calling the order “regrettable”, Google Japan said it is “disappointed” by the findings of the JFTC as it has invested significantly in the country.
“(Our) agreements with Japanese partners help to promote competition and have undeniably boosted their ability to invest in product innovations which deliver more choice for consumers,” it said in a statement.
It remains unclear whether Google, a subsidiary of Alphabet Inc, will challenge the Japanese order in court.
“We will review the order thoroughly to determine our next steps.”
Japan joins antitrust fight
In a major antitrust push, the U.S. government asked a judge in November to order the breakup of Google, including the sale of its widely used Chrome browser.
Similarly, the European Commission said in 2023 that Google should divest parts of its business and warned it could face a fine of up to 10% of its global revenue if it fails to comply.
In Japan, the JFTC conducted an on-site inspection of Amazon’s local subsidiary in Tokyo last year, accusing the e-commerce giant of abusing its market dominance.
In the U.S., a judge ruled last year that Google’s search engine unlawfully leveraged its dominance to suppress competition.
The search engine giant denied the claims, saying its popularity stems from consumer preference. The appeals process, in that case, is expected to stretch over several years.
Japanese regulators launched their investigation into Google in 2023, coordinating with authorities overseas handling similar cases.
AloJapan.com