TOKYO_ Japan’s competition watchdog ordered Google LLC on Tuesday to stop unfairly pressuring smartphone makers to preinstall its search app in violation of the antitrust law.
In issuing its first such order against a tech giant, the Japan Fair Trade Commission concluded that Google, which holds a dominant share of the online search market, had unfairly hindered competition.
As far back as July 2020, Google required six smartphone manufacturers using its Android operating system to preinstall Google apps, including the Chrome browser, and place them in designated positions on the home screen as a condition for offering the Google Play Store, according to the commission.
These contracts applied to at least 80 percent of Android devices sold in Japan.
Google additionally signed contracts with four manufacturers and one telecom operator to share part of its advertising revenue in exchange for not preinstalling apps from rival companies on their devices.
Since manufacturers generally avoid preinstalling multiple apps with similar functions on a single device, the setup created a situation in which it was difficult for competing search services, such as Microsoft Corp.’s Bing or Yahoo Japan, to enter the market.
The commission determined that such an arrangement constituted a “tying agreement” prohibited under Japan’s antitrust law.
Google has been ordered by the commission to involve lawyers and third parties to monitor reforms to its practices, with reports on its progress to be delivered periodically to the watchdog over five years.
In April last year, the commission accepted a voluntary improvement plan submitted by the U.S. search giant after it was found to have imposed unfair restrictions in its search advertising agreement with Yahoo Japan, now LY Corp.
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