Japan’s antitrust watchdog has ordered Google to stop pressuring smartphone makers to promote its apps like Google Search and Chrome. You’d know that both Google Search and Chrome are dominate when it comes to search engine and browser. The Japan Fair Trade Commission (JFTC) said the American tech giant violated the country’s Antimonopoly Act, as reported by Nikkei Asia.
Japan says Google limited competition through licensing deals and revenue-sharing terms
The recent order issued on Tuesday follows an investigation that began in October 2023. The JFTC found that Google required at least six Android phone makers to preinstall its search engine and Chrome browser, and show them on the home screen. These conditions were tied to licensing the Google Play Store, which is essential for selling Android phones in Japan. According to Nikkei Asia, around 80% of Android phones sold in Japan were affected.
Japan also said Google offered ad revenue-sharing deals to some manufacturers and telecom operators. In return, these companies agreed not to preinstall rival apps or search services. This, the watchdog said, reduced competition and limited user choice.
Under Japan’s law, companies are not allowed to limit their partners from working with competitors. The Japan’s Fair Trade Commission said Google’s practices blocked other search engines and browsers from reaching users. As part of the order, Google must stop these requirements immediately and allow manufacturers to include competing apps. It also has to relax how it shares ad revenue, giving partners more freedom in app choices.
This is the first time Japan has issued such an order to a global tech company. Similar actions have been taken in the US, EU, and India in recent history. Google Japan said it was “disappointed” by the decision and would review the order carefully. The JFTC believes the move will help bring more competition and benefit both users and businesses.
