Google Under Fire Again as Japan Joins the US in Investigating Monopoly Tactics

Japan's Antitrust Watchdog Targets Google for Alleged Monopoly Practices

Japan’s competition watchdog, the Japan Fair Trade Commission (JFTC), is preparing to issue a cease-and-desist order against Google for allegedly breaching Japan’s antitrust laws.

Sources indicate that the tech giant is accused of leveraging its market dominance in web search and smartphone operating systems to stifle competition.

Allegations of Coercive Contracts with Smartphone Makers

Central to the JFTC’s investigation is the claim that Google has coerced smartphone manufacturers using its Android operating system to pre-install its apps, including Google Chrome and Google Search, as a condition for accessing the Google Play Store.

Manufacturers have also reportedly been required to place these apps prominently on device home screens, further cementing Google’s dominance in search and browser markets.

Additionally, sources reveal that Google has entered revenue-sharing agreements with device makers.

These agreements allegedly incentivise manufacturers to exclude rival search apps from their devices by offering them a share of revenue generated from Google’s paid search ads.

Global Scrutiny Over Google's Business Practices

Japan’s investigation, which began in October 2023, aligns with similar probes worldwide.

The United States Department of Justice (DoJ) has taken a particularly aggressive stance.

Last month, the DoJ proposed that Google divest its Chrome browser and refrain from re-entering the browser market for five years to break its monopoly on search services.

Google, however, has pushed back against the DoJ’s proposal, calling it “extreme” and warning against measures that could “stifle innovation and future investment.”

In a recent court filing, the company argued that the remedies should correspond directly to the conduct deemed illegal, such as exclusive agreements with manufacturers and telecom carriers.

JFTC’s First Action Against a U.S. Tech Giant

If the JFTC proceeds with its cease-and-desist order, Google would become the first U.S. technology company to face such disciplinary action in Japan.

Source: Bloomberg

The watchdog has reportedly informed Google of its intentions and will finalise its decision after reviewing the company’s response.

The potential sanctions could reshape how Google operates in Japan, where it holds a dominant position in web search and digital advertising.

Observers suggest the move is part of a broader global trend of tightening regulatory oversight on Big Tech.

App Store Access at the Centre of Controversy

Beyond Japan, Google has faced accusations of tying app store access to restrictive conditions.

The JFTC alleges that Google’s agreements force manufacturers to compromise their independence in app selection and placement.

These practices, critics argue, have left little room for competitors to establish a foothold in the lucrative digital ecosystem.

With a final decision expected later this year, Google’s response will be closely watched as regulators worldwide continue to scrutinise the business practices of dominant technology firms.