Alphabet Inc.’s Google is preparing to challenge allegations from the Japanese government that it engaged in anticompetitive practices, specifically concerning the preferential placement of Google Search on smartphones, Bloomberg reports.
The move comes as Japan’s Fair Trade Commission (FTC) has issued a cease-and-desist order to Google’s Japan office, accusing the company of obstructing fair competition.
The FTC alleges that Google has been forcing smartphone manufacturers to prioritize Google Search as the default search option on their devices. This practice, according to the regulator, has hindered competition in the search market. A person familiar with the matter confirmed the order to the news agency, following an earlier report by the Nikkei.
This development is part of a broader global trend of increased scrutiny and regulatory challenges faced by Google and other large technology companies. Regulators worldwide are investigating whether these tech giants are using their dominance and control over data to unfairly stifle competition.
In response to the Japanese FTC’s order, Google stated that they have “continued to work closely with the Japanese government to demonstrate how we are supporting the Android ecosystem and expanding user choice in Japan.” The company added they were “disappointed” that the FTC did not adequately consider their proposed solution. Google further stated they would “present our arguments in the hearing process,” but did not provide specific details on the allegations or their defense.
This is not the first time Google has faced antitrust scrutiny in Japan. Earlier this year, the antitrust regulator issued an administrative order to the company, stating that it used tactics that hampered the ability of Yahoo Japan, a local search engine competitor, to compete in targeted search ads.
