The Japan Fair Trade Commission (JFTC) has taken a firm stance against Google, alleging anti-monopoly practices related to the pre-installation of its search engine and other apps on Android smartphones. On April 15, 2025, the JFTC issued a cease and desist order to Google, marking the first time the commission has taken such action against a major global technology company. This move highlights a growing global trend of increased scrutiny of tech giants and their market dominance.
The JFTC's investigation, which began in 2023, focused on Google's "Mobile Application Distribution Agreements" (MADAs) with Android smartphone manufacturers. These agreements allegedly required manufacturers to pre-install Google's Chrome browser, search bar, links to Google apps, and the Google Play store in exchange for access to the Android operating system and the Google Play app store. The commission found that these practices restricted competition and made it difficult for new market entrants to gain a foothold.
Specifically, the JFTC determined that Google had been asking at least six Android smartphone manufacturers, who account for approximately 80% of the Android devices sold in Japan, to pre-install its apps and place them in prominent locations on the home screen since July 2020. In return for this preferential treatment, Google reportedly guaranteed advertising revenue to some of these manufacturers and a telecom operator. The JFTC concluded that these arrangements constituted "trading on restrictive terms," which is prohibited under Japan's anti-monopoly law.
The JFTC's order requires Google to cease these practices, allow the installation of rival services, and give users the choice of default search engines. Google has expressed disappointment with the JFTC's findings, arguing that its agreements with Japanese partners are pro-competitive and have boosted their ability to invest in product innovations. The company has stated that it will review the order thoroughly to determine its next steps; however, it is important to note Google has not indicated whether it will appeal the ruling.
This action by the Japanese watchdog mirrors similar concerns and investigations in the United States and Europe. In the U.S., a judge ruled last year that Google illegally exploited its dominance to squash competition, while European regulators have also slammed Google's perceived monopolistic dominance. In 2022, South Korea's antitrust body fined Google $177 million for allegedly blocking smartphone makers from using modified versions of Android. Meanwhile, India's competition watchdog last year fined Google over $160 million for anti-competitive practices involving pre-installed apps. These parallel cases underscore a growing global movement to regulate the power and influence of major tech companies.
The JFTC's decision could have significant implications for the mobile search market in Japan. By preventing Google from prioritizing its own search engine and browser, the order may open the door for rival services to gain more visibility and attract users. This could lead to increased competition and innovation in the market, ultimately benefiting consumers. The Law on Promotion of Competition for Specified Smartphone Software, which will come into full force in December, will further regulate search engines and app stores, prohibiting the preferential display of a company's own related services over similar services from other parties in search results and requiring companies to allow users to easily change pre-installed apps.
