Google Faces Antitrust Scrutiny In Japan Over Alleged Anticompetitive Practices

Alphabet Inc., the parent company of Google, is facing heightened regulatory scrutiny in Japan, as the countrys Fair Trade Commission FTC accuses the tech giant of engaging in anticompetitive practices.

The Japanese antitrust watchdog claims that Google pressured smartphone manufacturers to prioritize Google Search as the default option on their devices, limiting competition in the search engine market.

In response, the FTC has issued a cease-and-desist order to Googles Japan office, marking a significant challenge for the California-based company.

Google expressed disappointment with the FTCs decision, stating that the commission had overlooked the company's proposed solutions. "We have continued to work closely with the Japanese government to demonstrate how we are supporting the Android ecosystem and expanding user choice in Japan," Google said, confirming its intention to present arguments during the hearing process.

This is not the first time Japans antitrust authority has taken issue with Google. Earlier this year, the FTC issued an administrative order accusing the company of restricting Yahoo Japans ability to compete in the market for targeted search advertisements. These ongoing legal challenges in Japan are part of a broader global trend of increasing scrutiny over Alphabet's market power. Similar regulatory actions have been taken around the world, including a 75 million fine imposed by Turkeys competition authority for allegedly abusing Googles dominant position in the digital advertising market.

Despite these mounting legal pressures, Alphabet's stock remains strong. On December 20, Alphabets Class C stock GOOG closed at 192.96, up 1.72 for the day. Pre-market trading suggested further gains, with the stock rising 0.74 to 194.38.

As the hearing process continues, the outcome of Google's defense could significantly influence its operations in Japan and shape its broader global regulatory strategy. Industry observers are closely monitoring how Google balances compliance with maintaining its dominant position in the search and digital advertising sectors.