Japan's Fair Trade Commission has ordered Google to stop alleged abuse of market power over local smartphone manufacturers. This comes just before significant trade negotiations with the US.
- Japan’s Fair Trade Commission (FTC) ordered Google to stop its alleged abuse of market power over local smartphone manufacturers.
- This order comes as Japan prepares for trade talks with the US, addressing tariffs imposed by President Trump.
- The FTC claims Google is forcing manufacturers to prioritize its apps to access the Google Play store on devices sold in Japan.
- Google's actions disadvantage competitors and raise compliance costs for American firms, as per a complaint by the US Trade Representative.
- This marks the first cease-and-desist order issued to a major US tech firm by Japan's FTC.
- Similar actions against Google and Apple have already taken place in the EU due to allegations of illegal tactics in mobile software markets.
- Google has contracts mandating preloading specific apps on devices, leveraging the ecosystem against competitors like Apple.
- Failure to comply with the FTC's orders could result in fines or criminal penalties for Google.
- The FTC intends to continue actively monitoring and enforcing compliance in the digital sector.
- Last year, the US recorded over $45 billion in services exports to Japan, indicating a significant economic relationship despite trade deficits in goods.