Japan slaps Google with a cease-and-desist order for violating anti-monopoly law

The future of Google and its vast range of interconnected services could be at a crossroads. Already under fire from US and EU courts, the tech conglomerate now faces an official rebuke from the Japanese government for taking illegal advantage of its massive market presence and control.

Normally, being on the cutting edge is a good thing for tech companies, but not now: It’s the first time any of the five major US tech firms have been hit with an official cease-and-desist order from the Japanese government. If Google doesn’t stop the monopolistic behavior, explain its updated practices in detail, and provide third-party compliance oversight for five years, it could be subject to a fine (Source: Japan Fair Trade Commission via The Japan Times).

Alleged abuse of bundled software agreements

Because time is a flat circle and what’s old is new again

Decades ago, United States v. Microsoft Corp. took the world by storm, as a US district court deemed Microsoft in violation of antitrust laws due to its deep integration of Internet Explorer within Windows. A judge invoked the landmark 1999 lawsuit last year when arguing Google continues to engage in anti-competitive behavior via exclusive agreements and a mobile software stranglehold.

Now, on the other side of the world, Japan is making the same accusation. In the order, the JFTC outlines how Google engages in anti-competitive behavior by forcing device manufacturers into Mobile Application Distribution Agreements and Revenue Sharing Agreements with terms that put third-party software at an unfair advantage. First, it explains how Google requires OEMs to give preference to its software in order to obtain an Android distribution license. It goes on to point out that this requirement, as well as similarly restrictive revenue-sharing agreements, violate Japanese anti-monopoly law.

Behold this incredible, (PDF warning) official government document explaining the JFTC’s decision.

At the heart of the issue, Google requires OEMs to preinstall the Google Search app, including its widget and a folder containing its icon, to each device’s default home screen. It demands the same for the Google Chrome app, and disallows manufacturers from removing Google Search as the browser default. To retain access to its revenue-sharing incentives, Google variably restricts OEMs from altering default browser or search functionality, or even giving users any obvious pathways to alternative search services. The order lays out that, as of December 2024, Google has entered into at least six MADAs and four RSAs with device manufacturers, and one RSA with a Japanese telecommunications provider.

The JFTC cease-and-desist order explains clearly that Google must stop forcing manufacturers to use its browser and search apps if they want an Android distribution license. It further lays out that Google cannot offer “money or other economic benefits” in exchange for OEMs favoring Google’s stock search functionality, default browser, and browser homepage settings. The JFTC also mandates Google create a plan of action on coming into compliance, provide regular training on anti-monopoly laws for relevant Google employees, and begin third-party compliance monitoring that reports to the Commission annually for five years.

Far from coming out of left field, the JFTC began the investigation in 2023, with its December 2024 findings setting the stage for the cease-and-desist order. Google and its web of software and services continue to face an uncertain future back home, with US officials doubling down on their desire to see the Chrome browser spun off from the multinational giant. It’s coming from all sides, too, with China quietly announcing an investigation, and an Indian court upholding $25 million in fines, in addition to various legal issues worldwide for the last few years. This all comes as the Big G remains at odds with the European Commission due to a failure to comply with the EU’s Digital Markets Act.

While all these lawsuits seem to be coming to a head at once, the wheels of justice tend to grind exceedingly slowly. Expect most of these clashes to play out over the coming months, and in the case of the US lawsuit, possibly years.