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Latin Times
Latin Times
Business

Google Hit with Cease-and-Desist by Japan Over Android Search Practices

The Google logo is displayed during the Made By Google event at Google headquarters on August 13, 2024 in Mountain View, California.

In a significant regulatory decision announced on Tuesday, Japan's Fair Trade Commission (JFTC) directed Google to cease its practice of requiring smartphone manufacturers to preinstall its applications.

The commission stated that this requirement constituted a violation of the country's anti-monopoly laws. This marks the first time Japan has taken such action against a major US tech firm.

The JFTC said Google's agreements with Android phone manufacturers hurt fair competition by making it harder for rival search engines to get noticed.

According to JapanTimes, the commission determined that, starting as early as July 2020, Google had been pressuring smartphone manufacturers to preinstall Google Chrome and Google Play, and to position these apps prominently on the home screen for easy access.

"By binding smartphone manufacturers and telecommunication carriers, Google has made it difficult for other competing search engine applications to be used on Android phones," said Saiko Nakajima, a senior investigator at the commission.

Google also shared some of its advertising revenue with manufacturers—if they agreed to make Chrome the default browser and avoided installing other search engine apps.

Japan Orders Google to Halt Android App Preload Deals

The JFTC reported that as of December 2023, these contracts were active with six major companies, covering about 80% of Android smartphones in Japan.

The cease-and-desist order instructs Google to stop these actions and demands that it provide clear guidelines to follow the law. If Google fails to comply, the company may face financial penalties.

In response, Google Japan expressed disappointment, calling the order "regrettable," AP said.

In a public statement, the company said, "Google has a long-standing commitment to fair competition and respect for user choice. We will carefully review the cease and desist order and work with the Fair Trade Commission."

The company also defended its practices, claiming that manufacturers and carriers freely choose which apps to install and often pick Google products because they believe those are the best options.

This case adds Japan to a growing list of governments challenging Google's dominance. Similar complaints have been raised in the US and Europe, where legal battles over tech monopolies are still ongoing.

Last year, a US court ruled that Google unfairly used its search engine power to block rivals—a decision the company is still appealing.

Originally published on vcpost.com

© {{Year}} VCPOST.com All rights reserved. Do not reproduce without permission.
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