Japan demands that Google cease abusing its control over mobile phones
By ordering Google to cease its purported abuse of its dominant position in the smartphone market, the Japanese government, acting through its Fair Trade Commission, has adopted a tough stance.
Google, a division of the Google conglomerate, is accused by the Japanese commission of abusing its dominance over the Google Play app ecosystem to pressure regional phone makers to give its apps and services top priority on devices. The regulator claims that this practice increases Google's dominance in a market where Apple is already the top smartphone brand and restricts competition.
Japan's action is in line with the prevailing view in the European Union, which is that Google and Apple are controlling digital ecosystems and establishing their own "walled gardens" where users have no control over the resources they can access.
Not only does Japan's decision have domestic ramifications, but it also comes amid trade tensions with the United States. According to Bloomberg, the FTC's ruling comes just days before Ryusei Akazawa, the minister of economic revitalization, visits Washington to ask for a waiver of the tariffs that former President Donald Trump has placed on Japanese goods.
The Office of the United States Trade Representative filed a complaint alleging that Japan's Digital Platforms Act disproportionately affects American companies by raising compliance costs, which prompted this action.
The United States is defending the interests of its own tech giants, while Japan aims to shield phone manufacturers like Sony and Sharp from Google's practices. More than $45 billion was made by US businesses in 2024 from services sold to Japan, including digital advertising and licensing fees from the Android ecosystem.