Japan issues first cease-and-desist order against Google over antitrust violations
Japan has issued its first-ever cease-and-desist order against Google, accusing the tech giant of violating the country's anti-monopoly law by coercing smartphone manufacturers to preinstall its apps. The landmark action by the Japan Fair Trade Commission signals growing global scrutiny of major tech firms.
The Japan Fair Trade Commission (JFTC) announced on Tuesday that Google breached competition laws by requiring Android smartphone makers to preinstall Google Play and Google Chrome on home screens in prominent positions, effectively disadvantaging rival search engine applications.
Saiko Nakajima, senior investigator for digital platforms at the JFTC, said the company's contracts restricted fair competition in the search engine market. 'Google's conduct has created a risk of impeding fair competition,' she said.
Since at least July 2020, Google allegedly entered into agreements with manufacturers covering around 80% of Android smartphones in Japan. The contracts reportedly included clauses that rewarded manufacturers with a share of advertising revenue, provided they set Google Chrome as the default browser and refrained from installing competitor apps.
The JFTC's cease-and-desist order directs Google to end such practices immediately and bars it from requesting app preinstallation in future contracts. Google must also develop internal compliance guidelines aligned with Japan's antitrust rules.
The ruling marks the first time Japan has taken formal action against a company within the GAFAM group—Google, Apple, Facebook, Amazon, and Microsoft—over antitrust concerns.
Failure to comply could subject Google to financial penalties. The move aligns Japan with the United States and European Union, which have taken similar steps against large tech firms accused of abusing market dominance.
With this decision, Japanese regulators aim to foster increased competition in the country's digital ecosystem.
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