The parent company of Google, Alphabet Inc. has been accused of engaging in anticompetitive practices by the Fair Trade Commission (FTC) in Japan.
The FTC alleged that Google pressured smartphone manufacturers to prioritise Google Search in default screen placements, limiting competition in the search engine market.
The commission has consequently issued a cease-and-desist order to Google’s Japan office, marking a significant regulatory challenge for the California-based company.
Google expressed disappointment with the FTC’s decision in a statement, claiming that 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.
This development adds to Alphabet’s mounting regulatory challenges across the globe as Turkey’s competition authority recently fined Google $75 million (2.61 billion lira) for allegedly abusing its dominant position in the digital advertising market.
Turkish regulators accused the company of giving preferential treatment to its supply-side platform (SSP) services, creating barriers for competitors and distorting fair competition in the ad server market. The investigation concluded that these practices hindered smaller ad tech providers from gaining market share, further solidifying Google’s dominance.
Advertising while addressing regulatory concerns will require a careful balance of compliance and innovation.