The Japan Fair Trade Commission issued a cease and desist order against Google on Tuesday, accusing the company of unfair trade practices related to its search services on Android devices.
This action follows similar crackdowns in the UK and the U.S., reflecting growing global concerns over the company’s market dominance.
The Commission stated that Google violated Japan’s anti-monopoly law by compelling Android device manufacturers to prioritize its search apps and services through licensing agreements.
Google develops the Android operating system, but companies like Samsung and Lenovo manufacture Android devices, including smartphones and tablets.
Licensing agreements are required to allow these manufacturers to preinstall Google apps, such as the Play Store, on their devices.
The JFTC stated that Google used licensing agreements to mandate manufacturers preinstall and prominently feature Google Search and Chrome on devices, with at least six such agreements in place by December 2024.
Additionally, the Commission noted that Google required manufacturers to exclude competing search services as part of its advertising revenue-sharing model.
Japan’s anti-monopoly law prohibits businesses from imposing restrictive terms that unfairly hinder their transaction partners’ activities.
The JFTC launched its investigation into Google on October 23, 2023, and in April 2024, it approved a commitment plan from Google that addressed certain anti-competitive concerns.
The cease and desist order marks a tougher approach by the Japanese government and is its first action against a U.S. tech giant.
It also reflects a global trend of anti-competitive measures against Google.
The JFTC stated that it coordinated its investigation with other international competition regulators experienced in probing Google.
In a landmark case last year, a U.S. federal judge ruled that Google held an illegal monopoly in the search market, stating that its exclusive search agreements on Android and Apple’s iPhone solidified its dominance.
Meanwhile, Britain’s competition watchdog launched an investigation into Google’s search services in January, following the introduction of new competition rules in the country.
The JFTC’s cease and desist order directs Google to stop requiring its own services to be installed and prominently featured on smartphones.
Furthermore, the company is instructed to ease its restrictive conditions on advertising revenue distribution, allowing manufacturers to choose from a range of options.
