Google Faces Antitrust Scrutiny in Japan Over Alleged Anticompetitive Practices
Alphabet Inc., the parent company of Google, is facing increased regulatory pressure in Japan as the country’s Fair Trade Commission (FTC) accuses the tech giant of engaging in anticompetitive behavior.
The Japanese antitrust watchdog alleges that Google pressured smartphone manufacturers to prioritize Google Search in default screen placements, limiting competition in the search engine market.
In response, the FTC has issued a cease-and-desist order to Google’s Japan office, signaling a significant regulatory challenge for the California-based company.
In a statement, Google expressed disappointment with the decision, arguing that the FTC overlooked the company’s proposed solutions to the issue.
“We have continued to work closely with the Japanese government to demonstrate how we are supporting the Android ecosystem and expanding user choice in Japan,” Google stated, confirming it will present its arguments during the hearing process.
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This is not the first time Japan’s antitrust body has scrutinized Google. Earlier this year, the FTC issued an administrative order accusing the company of limiting Yahoo Japan’s ability to compete in targeted search advertisements.
The legal challenges in Japan reflect a broader trend of increased global scrutiny over Alphabet’s market dominance.
Similar regulatory actions have been seen worldwide, including a recent $75 million fine imposed by Turkey’s competition authority for allegedly abusing Google’s dominant position in the digital advertising market.
Despite these mounting legal pressures, Alphabet’s stock performance remains strong. On December 20, Alphabet’s Class C stock (GOOG) closed at $192.96, reflecting a 1.72% daily increase. Pre-market trading indicated further gains, with the stock rising 0.74% to $194.38.
As the hearing process unfolds, the outcome of Google’s defense will likely shape its operations in Japan and influence its global regulatory strategy. Observers are closely watching how the tech giant balances compliance efforts with maintaining its dominant position in search and advertising markets.
