Regulatory Action Against Google in Japan
In a significant development that underscores the shifting landscape of regulatory oversight for technology firms, Japan’s Fair Trade Commission (JFTC) has issued a cease-and-desist order against Google. The commission accuses the tech giant of breaching the nation’s anti-monopoly law by mandating smartphone manufacturers to preinstall its applications on Android devices. This decisive action marks a historic first for Japan, targeting a member of the GAFAM group—Google, Apple, Facebook, Amazon, and Microsoft—and reflects a growing global momentum to curtail the dominance of Big Tech.
The JFTC’s investigation revealed that Google’s controversial practices have been in place since at least July 2020. During this period, the company required Android phone manufacturers to install key applications, such as Google Play and Google Chrome, and to prominently feature them on device home screens as a prerequisite for accessing the Google Play app store.
According to Saiko Nakajima, a senior investigator at the JFTC, these arrangements, referred to as Mobile Application Distribution Agreements, have stifled competition by hindering rival search engines and browsers from establishing a presence on Android devices sold in Japan. “By binding smartphone manufacturers and telecommunication carriers, Google has made it difficult for other competing search engine applications to be used on Android phones,” Nakajima stated. She further emphasized that Google’s actions pose a risk to fair competition, leading the commission to classify them as violations of the Antimonopoly Act.
The investigation also uncovered that Google’s contracts extended beyond mere preinstallation requirements. The company incentivized manufacturers by offering portions of its advertising revenue to those who agreed to set Google Chrome as the default browser and abstain from preinstalling competing search engine applications. As of December of the previous year, at least six manufacturers, representing approximately 80 percent of Android smartphones in Japan, were involved in such agreements.
The JFTC concluded that these practices constituted “trading on restrictive terms,” a violation explicitly prohibited under Japanese antitrust law. The cease-and-desist order mandates that Google immediately cease these practices and prohibits the company from compelling manufacturers to preinstall its applications or restrict the installation of rival services. Additionally, Google is required to develop new compliance guidelines and appoint an independent third party to oversee adherence to the order, with regular reports to be submitted to the regulator over the next five years. Non-compliance could lead to substantial financial penalties.
In response to the JFTC’s findings, Google expressed disappointment but indicated a willingness to collaborate with the regulator. “Google has a long-standing commitment to fair competition and respect for user choice,” the company stated. “We will carefully review the cease and desist order and work with the Fair Trade Commission to ensure that Android remains a competitive choice for Japanese consumers, smartphone manufacturers, and carriers.” Google maintains that its partners opt for its applications voluntarily, believing them to be the best available options.
This regulatory action aligns Japan with other major economies, including the United States and members of the European Union, which have initiated similar measures to address perceived anti-competitive behaviors by dominant digital platforms. The decision highlights a broader global trend, as regulators increasingly strive to maintain an open and competitive digital marketplace, even as a select few tech companies exert unprecedented influence over consumer access to information and services.
