Japan’s Fair Trade Commission (JFTC) has issued a cease-and-desist order to Alphabet’s Google over anticompetitive practices.

This action is the first of its kind against a US tech giant in Japan.

On April 15, 2025, the JFTC said that Google required smartphone manufacturers to prioritize its services.

The order also mandates Google to appoint a third party to monitor compliance and report to the regulator.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Japan’s historic first action signals broader shift in Asian tech regulation

The JFTC’s cease and desist order against Google represents the first such action against a US tech giant in Japan, marking a significant moment in Asian regulatory history.

This action comes after Japan enhanced its regulatory framework through amendments to the Anti-Monopoly Act in 2019, which expanded the JFTC’s powers to address digital market issues 1.

Japan is backing this regulatory shift with significant resources, requesting a 43% budget increase to 17.4 billion yen (US$120 million) for fiscal 2025 and establishing a new section with approximately 50 officials dedicated to tech regulation 2.

The upcoming Mobile Software Competition Act, set for full enforcement by December 2025, further demonstrates Japan’s commitment to creating specialized regulations for digital markets rather than relying solely on traditional antitrust frameworks 3.

This case follows Japan’s 2018 announcement to increase oversight of foreign tech giants, showing a strategic shift in how Japanese authorities approach digital market regulation 4.

2️⃣ Google case follows global pattern of increasing scrutiny on mobile ecosystems

The JFTC’s focus on Google’s requirement that smartphone makers prioritize its services mirrors similar concerns raised by regulators worldwide about control of mobile ecosystems.

This case highlights how competition concerns have evolved beyond traditional price-based harm to focus on how tech giants can restrict innovation and consumer choice through platform control 5.

Japan’s action comes amid similar investigations in the EU and US, reflecting growing global consensus among regulators about the need to address competitive imbalances in mobile software markets 6.