The Japan Fair Trade Commission (JFTC) is preparing to issue a cease-and-desist order against Google, accusing the tech giant of violating the country’s antimonopoly laws by coercing smartphone manufacturers to preinstall its search app on devices. This would mark the first time a cease-and-desist order has been issued against one of the U.S. tech giants—Google, Apple, Facebook (Meta), and Amazon—collectively known as GAFA, reads a Japan Times report published on Monday.
The JFTC claims Google has been pressuring manufacturers in Japan to sign contracts that require the pre-installation of Google’s search app, with a stipulation that it be placed in a prominent position on devices' home screens. In return, manufacturers are granted access to the Google Play app store. Additionally, Google is accused of incentivizing manufacturers by sharing a portion of the revenue generated from ads on its search platform, provided they do not preinstall competing search engine apps.
The JFTC has been investigating these practices since October 2023 and has already notified Google about potential penalties. A formal cease-and-desist order is expected to be issued after the company responds in a hearing. The commission believes that since 2020, Google has been imposing unfairly restrictive terms on manufacturers, thus stifling competition in the Japanese market.
Should the order be enforced, Google will be required to cancel its contracts with manufacturers and ensure that similar violations do not occur in the future.
Google currently dominates the Japanese mobile search market, accounting for 81% of mobile searches, with Yahoo Japan a distant second at 11.8%, according to GlobalStats. This move by the JFTC is aimed at curbing Google's alleged monopolistic practices and fostering a more competitive environment.
Globally, regulators, including those in the U.S. and Europe, have been increasingly cracking down on antitrust violations by tech giants like Google, which are accused of creating illegal market monopolies.
Bd-pratidin English/ Jisan
