ALBAWABA - Google is being accused of breaking antimonopoly regulations by the Japan Fair Trade Commission (JFTC), which is getting ready to issue a cease-and-desist order against the internet giant, according to the Japan Times.
This is part of a larger campaign to combat anti-competitive activity in digital marketplaces and is Japan's first significant action against a U.S. tech company.
According to the JFTC, in order for smartphone makers to have access to Google's ecosystem, they had to preinstall the Chrome browser and Google Play Store. The company is also charged with providing manufacturers with financial incentives in exchange for their agreement to block rival search applications, AFP reports.
Allegedly, these actions hindered competition and unjustly cemented Google's dominance in the Japanese market.
Such agreements have been found to be “transactions with binding conditions,” which is against Japan's antimonopoly rules, by the probe which started in October 2022. If confirmed, Google will have to void these contracts and guarantee adherence to fair trade laws. Before the order is finalized, a hearing with the firm is scheduled.
To combat Google's monopoly in the search industry, US authorities have lately called for the dismantling of some of the company's businesses, including the possible sale of its Chrome browser, according to Android Police. In a similar vein, the European Union has suggested more structural changes to Google's business model and penalized the company billions of dollars for antitrust infractions.
As of last month, Google accounted for over 81% of mobile search traffic in Japan, dominating the search industry. By initiating this action, the JFTC hopes to counteract this power imbalance and promote more competition in the search engine and app sectors.
