^{Source: Mashable}

Japan’s Fair Trade Commission Targets Google’s Android Dominance in Landmark Action

In a decisive move that echoes growing global scrutiny of Big Tech, Japan’s Fair Trade Commission (JFTC) has issued a cease-and-desist order against Google for engaging in unfair trade practices on Android devices. This marks Japan’s first formal antitrust order against a major U.S. tech company—and could reshape how Google does business in Asia’s second-largest economy.

What Sparked the Crackdown?

The JFTC’s decision, announced Tuesday, stems from its findings that Google used licensing agreements to illegally favor its own apps—particularly Google Search and Chrome—on Android smartphones and tablets.

While Android is developed by Google, the hardware is produced by third-party manufacturers like Samsung, Sony, Sharp, and Lenovo. These companies must enter licensing deals with Google to legally install key software like the Google Play Store. But JFTC investigators found that these deals came with strings attached.

As of December 2024, at least six major device makers were contractually obligated to:

• Preinstall Google Search and Chrome, and
• Display them prominently, often as the default options.

In addition, JFTC uncovered that Google restricted manufacturers from offering rival search engines if they wanted access to Google's advertising revenue-sharing model—a key source of profit for hardware makers.

“These conditions are considered to be a form of exclusionary conduct,” the JFTC said, “and may have significantly limited competition in the search service market.”

Global Context: Japan Joins Worldwide Pushback Against Google

Japan’s decision isn’t happening in isolation. Regulatory agencies across the globe have taken similar actions in recent years:

• In October 2023, the U.S. Department of Justice argued in federal court that Google used exclusive contracts with Apple and Android makers to illegally dominate the search engine market.
• In January 2024, the UK’s Competition and Markets Authority (CMA) launched its own investigation into Google's behavior, citing concerns about how its dominance in mobile ecosystems hurts innovation and competition.
• The European Union fined Google over €8.25 billion across three cases since 2017, including one focused on Android-related practices.

Japan’s JFTC said it coordinated closely with these international regulators, suggesting a more unified, global approach to policing Big Tech behavior.

Timeline of Japan’s Investigation

• October 23, 2023: JFTC formally launches an investigation into Google’s Android practices.
• April 2024: Google submits a commitment plan to address concerns, offering to ease some restrictions voluntarily.
• April 16, 2025: JFTC rejects the commitment plan as insufficient and issues a binding cease-and-desist order.

What Google Must Do Now

The JFTC’s order requires Google to:

1. Stop forcing manufacturers to preinstall or prioritize its apps.
2. Loosen restrictions on its ad-revenue deals, allowing manufacturers to work with alternative search engines.
3. Appoint an independent third-party auditor to monitor compliance, reporting directly to the JFTC for the next five years.

Failure to comply could result in significant financial penalties and deeper regulatory scrutiny.

Google, in a statement, said it is reviewing the order and will work with the JFTC to ensure compliance. However, the company emphasized that Android gives users and manufacturers freedom of choice—a claim now under intense challenge.

Why This Matters for the Tech Industry

Japan’s aggressive stance could have wider ripple effects:

• Asian smartphone manufacturers may begin negotiating tougher terms with Google or explore preinstalling alternative apps.
• Competitors like DuckDuckGo, Yahoo Japan, or local search engines may find new opportunities in a previously closed market.
• Other countries in Asia, such as South Korea or India—already skeptical of Google’s power—may be emboldened to launch their own investigations.

In Japan alone, Android powers nearly 70% of smartphones, making Google’s search app the default for millions of users.

Final Thoughts

Japan's bold action is more than a regulatory slap—it’s a strategic signal to the global tech industry that dominance will no longer excuse anti-competitive behavior. With antitrust sentiment rising worldwide, Google—and other tech giants—may need to rethink how they approach platform control, licensing, and app visibility.

If history is any guide, this won’t be the last showdown between governments and Silicon Valley’s biggest players.

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