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Japan hits Google with landmark antitrust order over app preinstalls

The cease-and-desist order requires the U.S. search giantto stop violating Japan’s anti-monopoly law and prohibits it from compelling manufacturers to preinstall its applications.

“By binding smartphone manufacturers and telecom carriers, Google made it difficult for competing search engine apps to be used on Android devices,” said Saiko Nakajima, senior investigator for digital platform operators at the Japan Fair Trade Commission.

In a groundbreaking action, the Japan Fair Trade Commission issued a cease-and-desist order against Google, accusing the company of violating Japans anti-monopoly law by requiring manufacturers to preinstall its apps on Android smartphones.

This marks the first time Japan has taken such a step against any of the major U.S. tech giants, known as GAFAM — Google, Apple, Facebook, Amazon, and Microsoft, reported The Japan Times.

“By binding smartphone manufacturers and telecom carriers, Google made it difficult for competing search engine apps to be used on Android devices,” said SaikoNakajima, senior investigator for digital platform operators at the Japan Fair Trade Commission.

She added that Google’s actions posed a threat to fair competition in the market, constituting a violation of the Antimonopoly Act.

The commission found that since at least July 2020, Google required Android phone makers to preinstall Google Play and Chrome and position them prominently on the home screen. The tech giant also shared advertising revenue with manufacturers who agreed to set Chrome as the default browser and refrain from preinstalling rival search engines.

As of December last year, Google had agreements with at least six manufacturers responsible for about 80% of Android smartphones in Japan, according to the commission.

The cease-and-desist order requires Google to stop violating Japan’s anti-monopoly law and prohibits it from compelling manufacturers to preinstall its apps. It also mandates the company to draft compliance guidelines to align with the law.

The move aims to promote greater competition in the search engine market. Noncompliance could result in fines.

In response, Google Japan expressed “deep regret” over the decision, stating its commitment to fair competition and user choice. The company insisted that manufacturers choose Google apps based on merit, not coercion.

Japan joins the U.S. and Europe in tightening antitrust scrutiny of tech giants.





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