Watch out for rising monopolies! Japanese regulators launch probe into Google
Japan's antitrust watchdog to investigate Google's dominance in search over alleged claims of preferential treatment from smartphone maker。
On Monday (October 23), the Japan Fair Trade Commission has decided to investigate whether Google (hereinafter referred to as Google) violated the Anti-Monopoly Law by requiring smartphone manufacturers to default to Google search during initial setup.。The move is suspected of shielding competitors, crowding out competition in the same industry and abusing market position.。
Later in the day, the Antitrust Commission announced the official opening of an investigation into the US tech giant in the area of web search services。
Authorities in Europe and the United States have tightened regulations on search and other services where Google dominates market share, and the company already accounts for about 90 percent of the global search market.。
Last year, the European Union discussed and passed the Digital Markets Act (DMA), which aims to prevent large companies from abusing market power and encourage a large number of new players to enter the market, thereby providing consumers with multiple choices and optimizing the market competition environment.。
Prior to this, the U.S. Department of Justice and several state attorneys general also filed a lawsuit against Google, claiming that it used illegal agreements to exclude competitors.。It is understood that the case is still pending and a preliminary verdict is expected by mid-November.。
Now, Japan's antitrust watchdog has also opened the review, planning to solicit information and opinions from the public on the matter to protect the competitive environment in Japan's domestic market.。This also means that Google will face greater antitrust risks globally.。
The committee will examine Google's actions such as requiring smartphone makers and other companies to set its search service as the default setting for mobile phone software and features, according to multiple people familiar with the matter.。
The Japanese authorities also noted that Google reached an agreement with the manufacturer stating that it would share advertising revenue with the manufacturer, one of the conditions being that the manufacturer would not pre-install another company's browser.。
Statistics show that Google has more than 70% of the Japanese search market。The commission stressed that any unfair agreement that favors Google's search service or prevents other companies' services from entering the market would have a significant impact on competition.。
In fact, this is not the first time that Japanese regulators have dealt with large companies on this issue.。Previously, the country's agency had investigated the monopoly of other big tech giants such as Amazon and Apple.。
In September 2020, the committee accepted Amazon Japan's plan to improve its business practices.。In fact, the program is suspected of violating antitrust rules, and the company has been asking suppliers for some discounts on its online shopping site.。
The Commission then agreed to conclude its investigation of Apple in September 2021, provided that Apple amended the payment terms of the "Reading App" to allow users to view and listen to various content.。
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