Dec 23, 2024, 9:18 AM
Dec 22, 2024, 8:04 AM

Japan set to hold Google accountable for antitrust violations

Highlights
  • The Japan Fair Trade Commission is investigating Google for allegedly forcing smartphone manufacturers into unfair contracts.
  • Google's contracts require preinstallation and specific positioning of its search app to access the Google Play store.
  • A cease-and-desist order is forthcoming, marking Japan's firm stance against monopolistic practices by tech giants.
Story

In Japan, the Japan Fair Trade Commission has been investigating Google for potential violations of the Antimonopoly Act. This investigation stems from accusations that Google has been coercing smartphone manufacturers to sign contracts that require the preinstallation of the Google search app. These contracts also dictate the positioning of the app on the smartphones' screens, a stipulation that manufacturers must comply with to gain access to the Google Play app store. The commission has reported that Google's practices unfairly restrict competition, primarily harming the internet search market. Expected to conclude the investigation soon, the Japan Fair Trade Commission is preparing to find Google guilty of the alleged violations. This action would mark a significant moment as it would be the first time the commission has taken such a step against a major U.S. tech company, often referred to as members of GAFA which include Google, Apple, Facebook, and Amazon. Previous rulings of a similar nature have been issued in the United States and European Union, suggesting a growing global concern regarding monopolistic behaviors of large technology firms. The commission's findings showcase the shift in Japan’s regulatory stance towards more stringent monitoring of big technology companies. As part of their upcoming actions, they have signaled their intention to issue a cease-and-desist order, requesting Google to halt monopolistic practices that jeopardize market competition. This rising scrutiny reflects a broader trend among various government authorities around the world, including recent escalations in interventions from Western countries aimed at curbing the influence of tech giants. With the planned cease-and-desist order, Japan aims to bolster competitive practices within the smartphone market and satisfy ongoing concerns regarding the restrictions placed upon manufacturers. The implications of this order could potentially reshape interactions between tech companies and device manufacturers in Japan, fostering a more competitive environment that encourages innovation and consumer choice.

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