Japan’s Fair Trade Commission (JFTC) is expected to rule that Google has violated the country’s antitrust laws. The decision will reportedly include an order instructing the company to cease monopolistic practices, according to sources cited by Nikkei .
The JFTC initiated its investigation in October last year, examining whether Google’s business practices in web search constituted a breach of Japan’s antimonopoly regulations. This action mirrors similar probes conducted by authorities in Europe and other major economies.
The Alleged Monopolistic Practices
Google, a subsidiary of Alphabet Inc., has been under scrutiny for leveraging its dominance in the global web browser market through its flagship product, Chrome. Chrome, the world’s most widely used browser, is integral to Google’s advertising business. The browser collects extensive user data, enabling the company to target advertisements with greater precision and profitability.
The forthcoming ruling from Japan’s antitrust authority aligns with a growing international consensus that Google’s market behaviour may unfairly stifle competition. The JFTC’s expected directive will compel the company to discontinue practices deemed monopolistic, though specific details of the violations have yet to be disclosed.
Global Momentum Against Google’s Dominance
Japan’s investigation follows a global trend of heightened regulatory action against Google. Last month, the United States Department of Justice (DoJ) secured a landmark decision in its antitrust case against the company. A U.S. judge ruled that Google must divest its Chrome browser and remain barred from the browser market for five years to break its monopoly in web search.
This ruling came amidst broader regulatory efforts in Europe, where Google has faced substantial fines and compliance orders for breaching competition laws. The European Commission has penalised the tech giant for practices including bundling services to maintain its dominance in search and advertising markets.
Implications for Google and the Market
The JFTC’s anticipated ruling is expected to place further pressure on Google, potentially prompting operational changes in its approach to the Japanese market. If forced to abandon certain practices, the company’s ability to collect and utilise user data through Chrome could be significantly curtailed, affecting its advertising revenue streams.
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