Japanese regulators have issued a cease-and-desist order to US tech giant Google, accusing the company of violating national antitrust laws in its handling of Android smartphone software. This is the first time Japan has taken such action against a global tech company.

"We have concluded that Google LLC's conduct threatens to impede fair competition," said Saiko Nakajima, a senior official at the Japan Fair Trade Commission (JFTC), during a press briefing on April 15, Caliber.Az reports via foreign media.

At the heart of the issue is how Google has allegedly restricted competition by bundling key apps on Android devices. According to the JFTC, since at least July 2020, Google has imposed contractual conditions on smartphone manufacturers in Japan, requiring them to pre-install its Google Play app store along with the Chrome web browser and its search engine as a package.

The JFTC argues that Google Play is so essential to smartphone functionality that devices without it are effectively unsellable, a view echoed by a government source speaking to AFP in December. As a result, this bundling practice is seen as limiting manufacturers’ freedom to choose alternative apps or services.

While no financial penalties were announced, Nakajima stated the order was designed to give manufacturers greater flexibility and encourage healthy market competition. “This will encourage competition and benefit society,” she said.

In response, Google Japan expressed disappointment with the decision. In a statement, the company said: “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.” Google added it would "review the order thoroughly to determine our next steps."

The case in Japan follows broader international scrutiny of Google’s business practices. In November, the US government requested a judge to consider breaking up parts of Google, including a possible sale of its Chrome browser, as part of an antitrust crackdown. Similarly, the European Commission in 2023 warned that Google could be fined up to 10 percent of its global revenue and might be required to divest parts of its advertising business.

Japan’s Fair Trade Commission has also targeted other tech giants. Last year, it launched an investigation into Amazon’s Japanese unit, accusing it of using its dominant position to pressure sellers into lowering prices. The JFTC said Amazon Japan manipulated its influential “buy box” feature to undercut rivals on other e-commerce platforms, further showcasing Japan's growing resolve to confront unfair digital market practices.

By Tamilla Hasanova

Source: caliber.az