Japan’s Antitrust Agency Launches Formal Investigation into Big Tech Companies
Japan to start antitrust probe into Apple and Google, says Nikkei (Flickr).
Japanese Fair Trade Commission’s (JFTC) Secretary-General Shuichi Sugahisa announced a probe into potential antitrust behavior from large mobile operating system providers on October 6. The investigation will focus on Apple and Google, and it seeks to determine if the companies have unfairly leveraged their dominance to squeeze other OS providers out of the market.
Shuichi Sugahisa’s announcement marks the first official investigation on behalf of the JFTC into antitrust concerns since the commission started compiling information on the digital sector in 2019. Despite worries with Google and Apple’s monopolization, Japan has refused to subject big tech companies to large fines like those in the U.S. and EU to prevent manipulative business tactics hindering smaller players. Instead, Japan had encouraged “the voluntary efforts of such companies to make improvements, out of concern that excessive regulation will hinder innovation.”
A law passed in February 2021 requiring fairer digital platform services operations has obliged OS providers, including Apple and Google, to disclose their business partners and contract terms. Recently, a call for even more transparency triggered the formal launch of Japan’s investigation into the potential market monopolization by tech giants.
In Japan, Apple’s iOS captures nearly 70 percent of the market, while Android makes up the majority of what remains. According to Nikkei’s reporting, Sugahisa told reporters that the investigation will involve interviews and surveys with OS operators, application developers, and smartphone users, as well as exploring market conditions for the sale of wearable devices. Inquiries will examine Google’s alleged demand that manufacturers include the Google search application as a condition before installing Android, making it difficult for these customers to use alternative search engines. Investigations will additionally evaluate the potential risks of Google’s vertically integrated business model and the ability that tech giants have in restricting advertising brokers and media outlets from entering into business with other tech companies.
Governments around the world have battled against dominant players in the market to protect both consumers and developers. The US Foreign Trade Commission (FTC)submitted a report in May 2021 that detailed ways in which mobile device manufacturers use specific parts and materials unavailable to the public, thus violating the right-to-repair legislation. Following the report, the FTC launched an antitrust investigation in July. The European Commission levied a $5 billion fine against Google in 2018 for coercing manufacturers into pre-installing Androids together with Google apps. Last month, South Korea approved a bill prohibiting major app store operators from forcing developers to use their specific payment systems. There is a clear global movement towards implementing tighter restrictions on big tech companies, and the JFTC has now entered the chorus of government institutions pushing for change.