Japanese authorities are to issue Google with a cease-and-desist order over an alleged antitrust violation, marking the first such action taken against a US tech giant, a government source said on Monday.
The Japan Fair Trade Commission (JFTC) accuses Google of violating the law by imposing “transactions with binding conditions” on Android smartphone manufacturers in Japan. Specifically, the JFTC claims Google required its online app store, Google Play, to be installed as part of a package deal with its web-browser search app, Chrome.
Google Play is so widely used that, without it, “Android devices are basically unsellable,” the source told AFP. The JFTC also believes that Google used financial incentives to pressure smartphone manufacturers into excluding rival search apps, according to the source, who requested anonymity as the information is not yet public.
This behaviour constitutes “unfair trading practices” prohibited by the antitrust law, the source said, adding that a cease-and-desist letter would be issued to Google pending a hearing.
Such administrative action is considered a “fairly strong” measure by the JFTC, the source noted, and the first action against the GAFAM — an abbreviation for the US tech giants Google, Amazon, Facebook, Apple, and Microsoft.
Google Japan was unavailable for comment when contacted by AFP.
This move mirrors similar actions taken against Google in the United States and Europe. In November, the US government asked a judge to order the dismantling of Google by selling its widely used Chrome browser, as part of a major antitrust crackdown on the company.
Meanwhile, last year, the European Commission recommended that Google should sell parts of its business and could face a fine of up to 10% of its global revenue if it fails to comply.
In Japan, the JFTC is also taking a tough stance on other US tech giants it views as engaging in anti-competitive practices. Last month, the agency conducted an on-site inspection of Amazon’s Japanese subsidiary in Tokyo, accusing the company of using its industry dominance to drive down prices.
Amazon Japan allegedly used its coveted “buy box” — a prominent spot on its website — to pressure sellers into lowering prices in order to give it a competitive edge over rival e-commerce sites, the JFTC said.
