Japan issues first antitrust order against Google over Android app restrictions

Japan’s Fair Trade Commission (JFTC) has issued a cease and desist order to Google, marking the first time the country has taken such action against a major US tech company for anticompetitive practices. The JFTC found that Google violated Japan’s antimonopoly law by requiring smartphone manufacturers using its Android operating system to preinstall Google’s search app and Chrome browser, and to place them in designated positions on the home screen as a condition for accessing the Google Play Store. These requirements applied to at least six manufacturers and covered about 80% of Android devices sold in Japan since July 2020.

The commission also revealed that Google signed contracts with some manufacturers and a telecom operator to share advertising revenue in exchange for not preinstalling rival apps, further limiting competition. The JFTC determined that these practices made it difficult for competing search services, such as Microsoft Bing or Yahoo Japan, to enter the market, constituting ‘trading on restrictive terms’ prohibited under Japanese law.

As part of the order, Google must:

• Stop requiring preinstallation and preferential placement of its search and browser apps on Android devices.
• Revise its contracts with manufacturers to remove such requirements.
• Appoint an independent third party, including legal experts, to monitor compliance and report progress to the JFTC for five years.

Google called the order ‘regrettable’ and stated it would review the decision and consider its response, arguing that Japanese manufacturers and telecom operators are not forced to transact with Google. The move aligns with similar antitrust actions in the US and Europe, where regulators are increasingly scrutinising the market dominance of major tech firms.