Japan's Fair Trade Commission to Rule Against Google in Antitrust Case

Japan's competition watchdog is expected to find Google guilty of violating the country's antitrust law, Nikkei Asia reported on Sunday. The Japan Fair Trade Commission (JFTC) has determined that Google's contracts with smartphone makers unfairly restrict competition, harming the internet search market.

The commission will soon issue a cease and desist order, demanding Google halt its monopolistic practices. This move reflects a broader global trend of increased scrutiny and restrictions on Google by regulatory authorities.

The JFTC's investigation focused on Google's agreements with smartphone makers using its Android operating system. The commission found that Google required manufacturers to prioritize its search services during the initial setup of Android phones and offered rebates to manufacturers who restricted the use of competing search apps.

After announcing its finding, the JFTC will order Google to stop these violations and implement measures to prevent recurrence. A monetary penalty is unlikely, as the JFTC determined Google did not use its dominance to force business partners to unfairly absorb losses. The commission will first present Google with a draft of its order, gather feedback, and then finalize its decision.

This action follows a previous JFTC decision in April, which approved Google's plan to not restrict technology sharing with Yahoo Japan. However, the commission launched a separate investigation into Google's search practices in October 2023.

Google's significant market share in Japan's search market, estimated at around 80% according to StatCounter, is a key factor in the JFTC's investigation. This case echoes similar antitrust actions against Google globally, including a substantial fine imposed by the European Union in 2018 and a US court ruling in August that found Google guilty of unlawfully monopolizing the search market.