Japan Opens Investigation Into Google for Alleged Antitrust Law Violations

Japan's competition authority, the Japan Fair Trade Commission, has launched an investigation into Google, the tech giant owned by Alphabet, over alleged breaches of antitrust laws related to its search practices on mobile platforms, as reported first by CNBC.

The probe will focus on whether Google entered into agreements with Android smartphone manufacturers, conditioning revenue sharing from search ads on the stipulation that rival search engines are not installed on the devices.

Additionally, the regulator will assess if Google's services are given preferential treatment on Android phones. The Japan FTC has invited third-party opinions as part of its investigation, with submissions due by November 22.

Google's Response

Responding to the inquiry, Google emphasized that Android operates as an "open-source platform," offering flexibility and diversity in partnerships with device manufacturers.

The company told CNBC that users have the autonomy to customize their devices according to their preferences, including internet browsing, search, and app downloads.

It is worth noting that Google's Android is the dominant mobile operating system globally, commanding roughly 80% of the smartphone market share. Over recent years, various aspects of Google's business practices related to Android have attracted regulatory scrutiny worldwide.

CNBC notes that in 2018, the European Union imposed a record 4.34 billion euro ($4.6 billion) fine on Google for alleged exploitation of Android's market dominance.

The EU contended that Google unfairly promoted its services by mandating smartphone makers to pre-install Google apps Chrome and Search alongside its app store, Google Play.

While Google successfully appealed and received a slight reduction in the fine, the court largely concurred with the regulators' findings.

Ongoing Antitrust Trial in the US

Concurrently, in an ongoing trial, the U.S. Department of Justice has accused Google of violating antitrust laws through exclusive agreements with mobile phone manufacturers and browser creators, aiming to establish its search engine as the default option for consumers. This trial is considered one of the largest tech antitrust cases the U.S. has seen for a while.

In a separate development, Google is set to compensate Ulku Rowe, a Google Cloud engineering director, with over $1 million following allegations of gender discrimination and retaliation within the company.

Rowe asserted that Google hired her at a lower pay grade compared to less experienced male colleagues in similar roles.

She also claimed to have been passed over for a promotion in favor of a less qualified male counterpart. A New York jury recently found Google culpable of gender-based discrimination, prompting the company to pay Rowe $1.15 million in total, encompassing punitive damages and compensation for her distress. However, the jury did not find Google in violation of New York's equal pay law.