The European Union's latest announcement can be described as conveying a strong wariness about a U.S. information technology corporation that has grown into a behemoth, increasing its control over the world of the internet.
The EU's European Commission (EC) has announced it will impose penalty payments of a record 4.34 billion euros (about 560 billion yen) on Google.
As a reason for its action, the commission said Google has violated the EU competition law, the equivalent of Japan's Antimonopoly Law.
Google is said to have forced mobile device manufacturers using Google's Android smartphone operating system to pre-install its apps as a bundle.
Against the backdrop of its high market share, the EC has judged Google is eliminating other makers' apps, thereby narrowing down the range of options for consumers. In reaction to this, Google is poised to offer all-out resistance by saying it is not depriving consumers of freedom, among other assertions.
Efforts should be made to settle the dispute over the IT corporation earning huge profits, with a view to securing sound competition.
Such companies as Apple Inc., Amazon.com, Inc. and Facebook Inc. are also offering useful services.
At the same time, there is a strong tendency for companies to gain overwhelming power and oligopolize the market once they hold a dominant position. It is necessary to pay attention to the harmful effects of such a situation.
Prevent future trade friction
In June last year, the EC also ordered Google to pay 2.42 billion euros in penalty payments. Google had arranged for its own comparison shopping website to be displayed where it would be more conspicuous than rival websites.
There is a sufficient possibility of similar problems arising in Japan, too. The Fair Trade Commission should increase its surveillance over possible unfair business deals.
U.S. IT companies have accumulated a massive amount of personal information. They are utilizing such information to earn profits through ads and other businesses, thereby rapidly expanding their business operations worldwide. The rise of Chinese IT companies is also remarkable. Many people are anxious about this situation.
In May, the EU enforced the General Data Protection Regulation (GDPR), which obliges personal data to be strictly managed. Although there are concerns that ordinary companies possessing customer data could also be subject to punishment, the GDPR's course of action is understandable, as it seeks to reinforce arrangements for the protection of personal information.
Moreover, the EU is considering a plan to create legislation aimed at stipulating such measures as making transactions transparent between website-operating firms and those marketing their products through such sites.
In Japan, the FTC, the Economy, Trade and Industry Ministry and other organs have started discussions on setting new regulations. How should a competitive environment be facilitated while averting excessive restrictions? Efforts should be made to expedite such a study.
U.S. President Donald Trump has criticized the tightened regulations in Europe. Discussions should be calmly promoted to prevent his criticism from becoming a new cause of trade friction.
(From The Yomiuri Shimbun, July 30, 2018)
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