Alphabet Inc., the parent company of Google, is under scrutiny in Japan as the Fair Trade Commission (FTC) accuses the tech giant of engaging in anticompetitive practices.
According to reports, the FTC alleges that Google pressured smartphone manufacturers to prioritize Google Search in default screen placements, limiting competition in the search engine market.
The commission has issued a cease-and-desist order to Google’s Japan office, marking a significant regulatory challenge for the Mountain View, California-based company.
In a statement, Google expressed disappointment with the FTC’s decision, claiming the regulator did not sufficiently consider 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,” the company said. Google also confirmed its intention to present its arguments during the hearing process but refrained from providing specific details about the allegations or its proposed remedies.
What to know
The latest action is not the first instance of Japan’s antitrust watchdog scrutinizing Google. Earlier this year, the FTC issued an administrative order against the company, alleging it used tactics to limit Yahoo Japan’s ability to compete in targeted search advertisements.Alphabet’s legal challenges in Japan echo broader global trends. Across various jurisdictions, major tech firms like Google face increasing pressure to address concerns about their market dominance and data control practices.
Governments and regulators are aiming to create a more competitive environment by curbing practices deemed unfair to rivals.
Despite these challenges, Alphabet’s stock performance remains resilient. As of December 20, Alphabet’s Class C stock (GOOG) closed at $192.96, marking a daily increase of 1.72%. Pre-market trading showed continued positive momentum, with the stock rising an additional 0.74% to $194.38.
