Japan opens antitrust investigation into Google search practices

The Japan Fair Trade Commission (JFTC) has opened an antimonopoly investigation into Google’s web search dominance. Japan’s antitrust watchdog is investigating whether the company has given a share of its revenues to Android smartphone manufacturers in exchange for Google’s search engine being pre-installed on their handsets instead of rival search engines. It is also examining whether Google forced them to install ‘Google Search’ and ‘Google Chrome’ browser applications with the ‘Google Play’ app.

In response to these allegations, Google has maintained that Android is an ‘open-source platform that has enabled a diversity’ in partnerships and device manufacturing. They argue that this openness has allowed a variety of players to participate in the Android ecosystem.

Why does it matter?

JFTC’s probe into Google’s web search practices is significant because it aims to determine whether the tech giant has breached the Japanese Antimonopoly Act and abused its dominant position. Google would be restricting competitors’ offers in the search services market, resulting in unfair competition and fewer choices for consumers.

The JFTC investigation follows similar moves by antitrust bodies in the European Union and other major economies. In the US, the Department of Justice is accusing Google of illegally retaining a monopoly over search and search advertising. If Google is judged to have violated any antitrust regulation, it might face substantial fines and be compelled to modify its business model.