Japan’s competition watchdog has ordered Google to stop prioritising its search engine and browser on Android smartphones in a move that could reshape mobile search dominance in the country.
The Japan Fair Trade Commission (JFTC) on Tuesday issued a cease and desist order against the tech giant, stating that Google’s conduct may violate the country’s Anti-Monopoly Act by restricting fair competition in mobile search services.
Since at least July 2020, the JFTC found, Google has entered licensing agreements with at least six Android smartphone manufacturers that required preferential treatment for its own search engine and browser in exchange for access to the Google Play app store.
These agreements, which reportedly affect about 80% of Android phones sold in Japan, led to manufacturers pre-installing Google Search and the Chrome browser by default.
JFTC outlines unfair business conditions since 2020
The order follows a multi-year probe that began when the JFTC noticed signs of restrictive practices embedded in Android licensing deals.
Under these terms, manufacturers were allegedly disincentivised from installing or promoting rival browsers and search engines on their devices.
The JFTC concluded that Google’s business practices “may substantially restrain competition” in the Japanese market by forcing manufacturers to offer Google’s search tools as default options.
Although the terms stopped short of explicitly banning rival services, the commission said the agreements created de facto exclusivity for Google’s offerings.
While Google has not been fined as part of the order, the company has been instructed to discontinue any contractual requirements that give undue preference to its own search and browser tools on Android phones distributed in Japan.
Antitrust scrutiny intensifies for Google in Asia
The JFTC’s ruling adds to a growing list of regulatory challenges facing Google across Asia. In 2022, South Korea’s antitrust body fined Google $177 million for allegedly blocking smartphone makers from using modified versions of Android.
Meanwhile, India’s competition watchdog last year fined Google over $160 million for anti-competitive practices involving pre-installed apps.
With Japan being the latest jurisdiction to act, analysts say the pressure is mounting for Google to reform its Android-related agreements globally.
Japan’s move is notable for targeting contracts that leverage market dominance in app stores to gain traction in search and browser services—two core pillars of Google’s advertising revenue.
Implications for users and manufacturers in Japan
The JFTC has not mandated changes to existing smartphones but said future licensing contracts must allow device makers to pre-install competing search engines and browsers without repercussions.
This could open the door for alternatives like Yahoo Japan or Microsoft’s Bing to gain greater exposure on mobile platforms in the country.
Google has not issued a formal response to the JFTC order as of Tuesday. The regulator noted that if Google complies voluntarily, no further legal action will be pursued.
However, a refusal to amend current practices could trigger additional sanctions under Japan’s competition laws.
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