Japan’s competition watchdog, the Japan Fair Trade Commission (JFTC), has announced that it investigates Google for a possible breach of antimonopoly laws in web search services. This investigation follows similar steps taken by European authorities and other major economies.
The Japan Fair Trade Commission is investigating two specific practices by Google:
- They are returning part of its revenue to Android smartphone makers so they do not install rival search engines. This practice is known as revenue sharing, a common practice in the tech industry. However, the Japan Fair Trade Commission is concerned that Google’s revenue-sharing agreements may be anticompetitive, as they could prevent other search engines from competing with Google.
- They are making Android phone makers install its “Google Search” and “Google Chrome” browser applications with the “Google Play” app. This practice is known as bundling and is also common in the tech industry. However, the Japan Fair Trade Commission is concerned that Google’s bundling practices may be anti-competitive, as they could make it difficult for other search engines and browsers to compete with Google.
In a press conference, a Japan Fair Trade Commission official said the investigation is not about whether Google’s services are widely used but about fair competition. The official said that the Japan Fair Trade Commission is concerned that Google’s practices may make it difficult for other search engines to compete, even if they offer better services.
The Japan Fair Trade Commission’s investigation is still in its early stages, and it is unclear what the outcome will be. However, the investigation indicates that antitrust regulators look closely at Google’s business practices worldwide. In addition to the Japan Fair Trade Commission’s investigation, Google faces antitrust investigations in the United States and the European Union. The US Department of Justice is investigating Google’s search dominance, while the European Commission is investigating Google’s ad business.
The outcome of these investigations could have a significant impact on Google’s business model. If Google is found to violate antitrust laws, it could be forced to change its practices or even break up its company.
