For the first time, Japan is set to take concrete action against an American tech giant. The authorities accuse Google of violating antitrust legislation through practices deemed unfair. A cease and desist order is expected to be issued soon, marking a turning point in the regulation of tech giants.
The Japan Fair Trade Commission (JFTC), the Japanese competition regulator, accuses Google of having imposed “transactions with restrictive conditions” on smartphone manufacturers using the Android system. More precisely, she claims that Google would have conditioned the installation of its application store, Google Play, on that of its Chrome browser, a grouping deemed illegal under Japanese antitrust laws.
According to a government source, Google Play has become so central to users that Android smartphones without this tool would be “virtually unsaleable”. This market dominance would have allowed Google to strengthen its ecosystem and eliminate any potential competition.
Financial incentives to lock in the market
In addition to imposing its ecosystem, the JFTC accuses Google of offering financial incentives to smartphone manufacturers to exclude competing search applications. This strategy, described as an “unfair commercial practice”, would have allowed Google to maintain its dominant position, to the detriment of innovation and diversity in the market.
Faced with these accusations, a cease and desist letter will be sent to the company, along with an upcoming hearing to determine the follow-up to be taken in this matter.
An unprecedented measure against GAFAM in Japan
This administrative action constitutes a first for Japan in its fight against GAFAM (Google, Amazon, Facebook, Apple and Microsoft).
According to the same government source, this is a “fairly strong” measure which demonstrates the desire of the Japanese authorities to tackle the practices deemed monopolistic by American technology giants.
A precedent with Amazon
This action against Google comes in a context where Japan is strengthening its regulation of large technology companies. Last month, the JFTC had already carried out an inspection of the premises of Amazon's Japanese subsidiary in Tokyo.
The company is accused of abusing its dominant position to impose price cuts on third-party sellers. These initiatives mark a toughening of Japanese authorities against foreign giants, as their growing influence raises concerns about competition and market fairness.
A signal for the future
With this first measure against Google, Japan is sending a clear message: anti-competitive practices will not be tolerated, regardless of the power of the actors concerned. This case could pave the way for other investigations, not only on GAFAM, but also on local companies, thus strengthening vigilance on compliance with antitrust laws in the digital economy.
Sami Nemli With Agency / ECO Inspirations
