Japan's Fair Trade Commission has ordered Google, a unit of Alphabet (GOOG, Financial), to cease certain business practices deemed anticompetitive under the nation's Antimonopoly Act.
The watchdog announced the order on Tuesday, stating that Google breached regulations tied to unfair trade behavior. The agency initially opened its investigation on October 23, 2023, and noted it coordinated with foreign regulators conducting similar probes into the company.
At the core of the inquiry was Google's arrangement with Android smartphone manufacturers. The company allegedly mandated that its search engine be given priority placement on mobile devices. This included requirements to preinstall Google Search and Chrome, along with placing their icons on the default home screen. Manufacturers were reportedly also restricted from altering Chrome's default search settings.
Additionally, the commission alleged Google provided financial incentives to manufacturers, offering ad revenue shares in return for not preloading competing search services. These agreements were said to ensure Google maintained dominance across general search functionalities.
Google Japan said it was disappointed by the regulator's decision, pushing back on the claims that its practices were harmful.
In a statement, the company argued that its agreements with local partners actually support competition and have helped them invest in new products that give consumers more options.
Google added that it plans to review the cease and desist order closely before deciding how to respond
