Google hit with antitrust order in Japan over preinstalled Android apps

What just happened? In a landmark decision that signals a new era of regulatory scrutiny for global technology giants, Japan's Fair Trade Commission (JFTC) has issued a cease-and-desist order against Google, accusing the company of violating the nation's anti-monopoly law by compelling smartphone manufacturers to preinstall its apps on Android devices. This marks the first time Japan has taken such action against a member of the so-called GAFAM group – Google, Apple, Facebook, Amazon, and Microsoft – and reflects the growing international momentum to rein in the power of Big Tech.

According to the JFTC, Google's practices date back to at least July 2020, when the company began requiring Android phone makers to install Google Play and Google Chrome and to feature these apps prominently on device home screens as a condition for accessing the Google Play app store.

The commission found that these arrangements, known as Mobile Application Distribution Agreements, restricted competition by making it difficult for rival search engines and browsers to gain a foothold on Android phones sold in Japan. "By binding smartphone manufacturers and telecommunication carriers, Google has made it difficult for other competing search engine applications to be used on Android phones," said Saiko Nakajima, a senior investigator at the JFTC. She added, "Google's conduct in this case has created a risk of impeding fair competition concerning transactions – thus, we have determined that this is an act in violation of the Antimonopoly Act."

The commission's investigation revealed that Google's contracts extended beyond just preinstallation requirements. The tech giant also offered portions of its advertising revenue to manufacturers who agreed to set Google Chrome as the default browser and refrain from preinstalling competing search engine apps. As of December last year, at least six manufacturers – accounting for roughly 80 percent of Android smartphones in Japan – were party to such agreements.

The JFTC concluded that these arrangements amounted to "trading on restrictive terms," a practice explicitly prohibited under Japanese antitrust law.

The cease-and-desist order mandates that Google immediately halt these practices and prohibits the company from requiring manufacturers to preinstall its apps or restrict the installation of rival services. Google must also develop new compliance guidelines and appoint an independent third party to monitor its adherence to the order, with regular reports to be submitted to the regulator for the next five years. Failure to comply could result in significant financial penalties.

In response, Google expressed disappointment with the JFTC's findings but pledged to work with the regulator. "Google has a long-standing commitment to fair competition and respect for user choice," the company said in a statement. "We will carefully review the cease and desist order and work with the Fair Trade Commission to ensure that Android remains a competitive choice for Japanese consumers, smartphone manufacturers and carriers."

Google maintains that its partners are not compelled to choose its apps, but do so because they believe them to be the best available options.

Japan's move aligns it with other major economies, including the United States and members of the European Union, which have taken similar steps to address what they view as anti-competitive conduct by dominant digital platforms. The decision underscores a broader global trend: regulators are increasingly determined to ensure that the digital marketplace remains open and competitive, even as a handful of tech companies wield unprecedented influence over how consumers access information and services.