The Japan Fair Trade Commission (JFTC) is investigating allegations that Google has demanded special privileges from smartphone manufacturers. The commission suspects that Google has unfairly requested its search apps to be pre-installed on phones, with its icons placed in certain spots, and made deals with Android device manufacturers, preventing them from including other search apps on their products in return for a share in the advertising revenue generated through Google searches. Japan investigates Google's smartphone app practices.
Saiko Nakajima, who leads the digital investigation team at the commission, has expressed concerns that such practices by a major player like Google could impede industry innovation and negatively impact customers. In response, Google has emphasized that Android users have ample flexibility to customize their devices, including how they browse the web or download apps, and has promised to continue working with government agencies and other industry players during the investigation. This is the first time the commission has consulted with third parties from the outset of an investigation, and it may also examine Android phone makers if they are found to be engaging in unfair business practices.
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Growing Legal Challenges Highlight Competitive Struggles
Google is facing legal troubles in Japan, where the Japan Fair Trade Commission (JFTC) has taken action against the company. This adds to the existing legal challenges Google is facing in the US, where its control over the search and ad market is being questioned. Microsoft CEO Satya Nadella has called out Google's claim that switching search engines on devices is easy as "bogus". Despite Microsoft's efforts to promote Bing as a viable alternative, it has struggled to compete with Google in this space.
ven in negotiations with Apple, Microsoft couldn't seal the deal to make Bing the default search engine on Apple devices. Google, on the other hand, defended the quality of its search services during the trial, with its Vice President for Search, Pandu Nayak, explaining how the company constantly works to improve its search function by organizing information and using machine learning tools. The judge handling the case, Amit Mehta, asked about the importance of "user interaction", to which Nayak agreed it's important but emphasized that having the right systems to monitor websites and their updates is key.
Interestingly, Nayak stated that when Google compared its search results to Microsoft's Bing, they found Bing to be of lesser quality. Google CEO Sundar Pichai is expected to testify in the coming weeks.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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