Google, the tech giant known for its dominance in the search engine market, is facing increasing scrutiny over its business practices worldwide. Japan’s Fair Trade Commission (JFTC) is the latest to investigate Google, with reports suggesting that it could soon issue a cease-and-desist order against the company.
The investigation focuses on Google’s alleged antitrust violations in the smartphone market, where its contracts with device manufacturers may be stifling competition, particularly in the internet search space.
The JFTC began its investigation into Google’s practices in October 2023, after concerns were raised that the company’s agreements with smartphone manufacturers were anti-competitive. These contracts are believed to have prevented other search engines from being prominently displayed on smartphones, thereby limiting consumer choice and giving Google an unfair advantage.
The commission’s investigation could lead to a cease-and-desist order, which would require Google to stop these practices. If issued, this order would align Japan with other countries, such as the U.S. and Canada, that are also challenging Google’s market dominance.
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Japan’s potential action against Google is part of a broader global trend. In the U.S., the Department of Justice (DOJ) recently filed a case against Google, pushing for the company to divest its Chrome browser and temporarily exit the browser market. This move aims to reduce Google’s control over the search engine market, which is heavily tied to its dominance in the browser space. Google, however, has responded by negotiating changes to its contracts with Android and Chrome manufacturers.
In Canada, Google is facing a lawsuit over anti-competitive practices related to its online advertising business.
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The investigations and legal actions against Google highlight the increasing pressure the company is facing from regulators around the world. In Japan, the expected cease-and-desist order could serve as a warning to other tech giants about the risks of anti-competitive behaviour. As the tech giant faces legal challenges, the question remains: Will Google be able to maintain its dominance, or will regulators succeed in levelling the playing field for competitors? Only time will tell.