Japan's government has taken an unprecedented step, accusing Google of violating its anti-monopoly law. The Japan Fair Trade Commission issued a cease-and-desist order against Google on Tuesday, saying it had violated the law by forcing manufacturers to preinstall its apps, including the Chrome browser and Play store app, on Android smartphones since at least July 2020, per the Japan Times. It claims the company asked at least six Android smartphone manufacturers for preferential treatment when the manufacturers signed licenses to appear in Google's app store, thereby hindering competition, per the Independent.
"This is the first time a cease-and-desist order has been issued to a major tech company in Japan," the commission says, describing deals in which Google allegedly promised advertising revenue to manufacturers who placed Google apps on smartphone home screens. This qualifies as "trading on restrictive terms," which is banned under Japan's antitrust law, the commission says, per the Independent. It argues competitors are blocked from entering the market and denied access to users as a result. The six smartphone manufacturers involved produce around 80% of Android smartphones sold in Japan, per the Times.
The cease-and-desist order blocks Google from requesting preferential treatment from manufacturers and instructs the company to "appoint a third party to monitor and report back to the watchdog," Reuters reports. Failure to abide by the order could result in a fine, per the Times. In a statement, a Google rep says the company is "disappointed" by the commission's findings. "Our agreements with Japanese partners help to promote competition and have undeniably boosted their ability to invest in product innovations which deliver more choice for consumers," the rep adds. "We will review the order thoroughly to determine our next steps." (Google faces dissolution after losing a massive antitrust case in the US.)
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