Google must stop favoring Search and Chrome on Android in Japan

Japan’s Fair Trade Commission (JFTC) has ordered Google to stop making deals that give preference to Google Search and Chrome on Android devices. Nikkei Asia says that it’s the first time the regulator has issued a cease and desist order to a major tech company.

The regulator found that Google had asked at least six different Android phone makers for such deals since July 2020, according to Nikkei. The article says the deals included Google sharing revenue with “five business partners”, with the condition that Chrome and Google Search services be “placed on the initial screen” and that other companies’ similar services not be installed at all.

As part of its punishment, Nikkei reports that Google will have to relax parts of its deals related to advertising revenue distribution so phone makers have more options. The company will need to get an independent third party to report on its compliance with the JFTC’s order for five years.

Google spokesperson Danielle Cohen emailed this statement to The Verge:

We’re disappointed by the JFTC’s findings, as our agreements with Japanese partners are pro-competitive and have undeniably boosted their ability to invest in product innovations which deliver more choice for consumers. We will review the order thoroughly to determine our next steps.

Japan passed legislation last year that shared similarities to the EU’s Digital Markets Act, including preventing self-preferencing moves like the ones Google is now being ordered to stop. Google is currently awaiting an antitrust punishment decision in the US that could result in the company getting broken up.

Update April 15th: Added a statement from Google spokesperson Danielle Cohen.