Japan orders Google to stop pushing smartphone makers to install its apps

Japan has issued a cease-and-desist order telling Google to stop pressuring smartphone makers to preinstall its search services on Android phones.

The Japan Fair Trade Commission said on Tuesday Google had unfairly hindered competition by asking for preferential treatment for its search and browser from smartphone makers in violation of the country’s anti-monopoly law.

The antitrust watchdog said Google, as far back as July 2020, had asked at least six Android smartphone manufacturers to preinstall its apps when they signed the licence for the American tech giant’s app store, Nikkei Asia reported.

This included the Chrome browser which, the commission found, was being placed on designated positions on smartphone home screens.

In exchange for putting Google apps on home screens, the company guaranteed advertising revenue to four phone makers and a telecom operator.

Such an arrangement constituted “trading on restrictive terms”, which was banned under the antitrust law, the commission said.

“This is the first time a cease-and-desist order has been issued to a major tech company in Japan,” the commission noted, adding that American and European regulators had made similar moves to stop the monopoly of some digital companies.

Japan’s anti-monopoly law restricts companies from conducting business on terms and transactions that unfairly impede competition.

The commission concluded Google’s contractual arrangements had effectively blocked potential market entrants and denied existing competitors access to users.

The contracts covered at least 80 per cent of the Android devices sold in Japan.

The commission directed Google to discontinue these practices, refrain from similar future conduct and inform involved parties of the corrective measures.

Google called the cease-and-desist notice “regrettable”, according to Kyodo News. In a statement, the company said that Japanese smartphone makers and telecom operators were not “forced to make transactions” with it.

The Independent has reached out to Google for comment.