Japan Accuses Google of Antitrust Violations, Plans Cease-and-Desist Order
In a landmark move, Japanese authorities are preparing to issue a cease-and-desist order against Google for alleged antitrust violations, marking the first such action against a major U.S. tech giant, a government source revealed on Monday.
The Japan Fair Trade Commission (JFTC) accuses Google of engaging in anti-competitive practices by imposing restrictive conditions on Android smartphone manufacturers in Japan. According to the JFTC, Google required manufacturers to bundle its Google Play app store with its Chrome web browser as part of a package deal, effectively limiting competition.
Key Allegations
Google Play, considered indispensable for Android users, is described as "essential" for making Android devices marketable, the source explained to AFP. Additionally, the JFTC alleges that Google offered financial incentives to manufacturers to exclude rival search applications, constituting "unfair trading practices" under Japan’s antitrust laws.
Pending a hearing, the JFTC plans to send a cease-and-desist letter to Google. This administrative action is regarded as a "fairly strong" measure, according to the source, and represents Japan’s first significant crackdown on GAFAM – the collective term for U.S. tech giants Google, Amazon, Facebook, Apple, and Microsoft.
Google Japan has not yet commented on the allegations.
Global Antitrust Scrutiny
The action mirrors increasing global scrutiny of Google’s business practices. In the United States, the government recently urged a judge to break up Google by selling its widely used Chrome browser, citing antitrust concerns. Similarly, the European Commission recommended last year that Google divest parts of its operations, with potential fines amounting to 10 percent of its global revenue if non-compliant.
Broader Efforts Against Big Tech
The JFTC’s crackdown on anti-competitive behavior extends beyond Google. In November, the commission conducted an on-site inspection of Amazon Japan’s Tokyo headquarters, accusing the e-commerce giant of abusing its market dominance.
Amazon Japan allegedly used its "buy box" feature to pressure sellers into lowering prices, thereby gaining a competitive advantage over rival platforms.
Japan’s intensified efforts against U.S. tech giants underscore its commitment to ensuring fair competition in the digital marketplace. As the global push for regulating tech behemoths grows, Japan’s latest action could set a precedent for further measures in the region.
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