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Japan’s antitrust watchdog has ordered Google to stop pressuring Android smartphone manufacturers to prioritise its search engine and browser, in what marks a significant shift in Tokyo’s regulatory posture towards Big Tech.
In a cease and desist order issued on Tuesday (April 15), the Japan Fair Trade Commission (JFTC) found that Google had engaged in practices that restricted competition by requiring at least six Android device makers to give preferential treatment to Google Search and the Chrome browser since at least July 2020. These terms were embedded in the licensing agreements for the Google Play store, covering about 80 per cent of Android smartphones sold in Japan.
The Commission also determined that the US tech giant guaranteed advertising revenue rebates to five of its business partners — including smartphone manufacturers and telecom operators — in return for placing Google services prominently on home screens and avoiding pre-installation of rival apps, Nikkei reported.
Under Japan’s anti-monopoly law, companies are prohibited from imposing transaction conditions that unfairly limit the freedom of business partners to engage with competitors. The JFTC concluded that Google’s contractual arrangements had effectively blocked potential market entrants and curbed existing competitors’ access to users.
Tuesday’s ruling comes a year after the Commission initiated commitment procedures with Google, in which the company avoided a formal finding of illegality by agreeing to submit voluntary remedial measures. However, the JFTC said the new order reflects a more serious assessment of the competitive harm caused by Google’s conduct.
The order mandates that Google immediately cease forcing manufacturers to install its apps on the initial screen of devices, and lift restrictions on the inclusion of competing services. It also requires Google to relax the terms under which it shares advertising revenue, giving hardware partners greater freedom in app selection.
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More ShortsSimilar actions in EU, US, and India
“This is the first time a cease and desist order has been issued to a major tech company in Japan,” the JFTC said, noting that the decision aligned with similar moves by authorities in Europe and the United States to rein in dominant digital platforms.
In July 2018, the European Commission fined Google €4.34 billion for abusing its dominance in the Android ecosystem. The Commission found that Google required manufacturers to pre-install Google Search and Chrome as a condition for licensing the Play Store and paid manufacturers and operators to pre-install Google Search exclusively.
In 2024, a US federal judge ruled that Google violated antitrust laws by engaging in anticompetitive practices, including paying billions of dollars to secure its position as the default search engine on various devices and browsers, thereby stifling competition.
Google had said that it would appeal the decision.
In India, too, the antitrust watchdog fined Google for anti-competitive practices related to mandatory pre-installation of Google Search and Chrome on Android phones.
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