Amazon Japan faces antitrust probe, source reports

Japan’s Fair Trade Commission has raided Amazon Japan over allegations of anti-monopoly violations. The company is suspected of pressuring sellers to reduce prices in exchange for favourable product placement on its e-commerce platform, a government source revealed.

The investigation comes amid growing global scrutiny of Amazon’s practices. In Europe, regulators are preparing a case to examine whether Amazon favours its branded products on its marketplace under new antitrust rules.

This is not the first time Amazon Japan has faced such scrutiny. In 2018, authorities accused it of shifting discount costs onto suppliers. The case was resolved after Amazon agreed to improve its business practices, but the latest allegations suggest ongoing concerns about its market conduct.

Google proposes changes to European search results amid antitrust scrutiny

Google has announced further changes to its search results in Europe in response to complaints from smaller competitors and looming EU antitrust charges under the Digital Markets Act (DMA). The tech giant has faced criticism from price-comparison sites, hotels, and small retailers over a 30% drop in direct booking clicks caused by earlier search tweaks.

The DMA, introduced last year to curb Big Tech dominance, prohibits Google from favouring its services. To comply, Google plans to offer expanded and uniformly formatted options for users to choose between comparison sites and supplier websites, along with new ad formats and tools for competitors to display prices and images.

As part of a test in Germany, Belgium, and Estonia, Google will temporarily remove hotel location maps and associated results to assess user interest in a simpler “ten blue links” layout. While reluctant to cut features, Google says these measures aim to strike a balance between user needs and regulatory requirements.

The European Commission has been scrutinising Google since March, with DMA violations carrying potential fines of up to 10% of global annual revenue. Google’s compliance efforts reflect its attempt to navigate the demands of regulators and rival businesses while maintaining its services’ usability.

Apple faces regulatory action over payment system in Brazil

Brazil’s antitrust regulator, Cade, has mandated Apple to lift restrictions on in-app payments. The decision follows a complaint by e-commerce giant MercadoLibre, accusing Apple of unfair practices.

The complaint, filed in 2022 in Brazil and Mexico, criticised Apple for forcing app developers to use its payment system. It also alleged that the company blocks apps from offering third-party digital goods or redirecting users to external websites.

Cade’s ruling requires Apple to permit developers to integrate external payment systems and allow hyperlinks to external purchasing platforms within apps. Developers must also have the option to include alternative in-app payment methods.

Apple faces a 250,000 real (£43,000) daily fine if it fails to comply within 20 days. Both Apple and MercadoLibre have yet to provide comments on the ruling.

Apple faces setback in India’s antitrust probe

India’s Competition Commission has rejected Apple’s request to pause an antitrust investigation, clearing the way for the case to progress. The investigation alleges Apple breached competition laws by exploiting its dominant app store position. Apple disputes these claims, arguing its market share in India is minor compared to Android devices.

The controversy began in 2021 when the non-profit Together We Fight Society (TWFS) accused Apple of anti-competitive practices. In August, the commission ordered investigation reports to be recalled, following Apple’s claims of sensitive information being leaked to rivals. Revised reports were issued after redaction disputes, but Apple requested a suspension, citing non-compliance by TWFS.

Regulator in India dismissed Apple’s concerns, calling its request to halt proceedings ‘untenable.’ The commission has now instructed Apple to submit audited financial records for three fiscal years to assess potential penalties. Apple has yet to respond publicly to these developments.

Senior officials at the Competition Commission are reviewing the evidence and will issue a final ruling. The case highlights broader scrutiny of major tech companies’ market behaviour, particularly regarding app store operations and developer relations.

EU ends antitrust probe into Apple’s e-book practices

The European Commission has closed its antitrust investigation into Apple’s e-book and audiobook practices after the original complaint was withdrawn, TechCrunch reported. The probe, launched in 2020, examined Apple’s in-app payment rules and its restrictions on third-party developers informing users about alternative payment methods.

This inquiry followed a similar case involving music-streaming apps, which led to a $2 billion fine against Apple earlier this year after Spotify alleged unfair competition. Despite the closure of the e-book case, the Commission clarified that this does not mean Apple’s practices comply with EU competition laws.

The investigation’s conclusion underscores the EU’s ongoing efforts to regulate tech giants and ensure a fair digital marketplace, with Apple remaining a focal point of scrutiny.

Indonesia bans iPhone 16 sales, prompting Apple’s new manufacturing plan

Apple has announced a $100 million investment plan to establish a factory in Indonesia to manufacture accessories and components. The move aims to resolve the ban on iPhone 16 sales, imposed due to Apple’s failure to meet Indonesia’s regulation requiring smartphones to contain 40% locally produced parts.

The trade ministry has confirmed plans to review Apple’s proposal. Indonesia‘s industry minister has expressed support for the initiative, which would be located in West Java. Since 2018, Apple has invested heavily in local developer academies but lacks manufacturing facilities in the country.

Alphabet also faces similar sales restrictions in Indonesia, underlining the country’s push to enforce local sourcing rules. Apple has yet to comment on the proposed plant or the ongoing regulatory challenges.

Amazon faces EU probe over product favouritism, sources report

Amazon is likely to face an EU investigation next year into allegations that it favours its own brand products on its online marketplace, according to sources familiar with the matter. If found in violation of the EU’s Digital Markets Act (DMA), Amazon could face a fine of up to 10% of its global revenue.

The potential investigation will be overseen by Teresa Ribera, the incoming EU antitrust chief, who will take office next month. Amazon has denied any wrongdoing, stating it complies with the DMA and treats all products equally in its ranking algorithms. The company has been in ongoing discussions with the European Commission about its practices.

The DMA, implemented last year, aims to curb the dominance of Big Tech by prohibiting preferential treatment of their products and services. Alongside Amazon, other tech giants such as Apple, Google, and Meta are also under scrutiny. Amazon shares fell 3% following reports of the possible investigation.

Google faces pressure to end search monopoly with proposed breakup

US prosecutors have urged a federal judge to impose sweeping changes on Google to dismantle its alleged monopoly on online search and advertising. Proposed remedies include forcing Google to sell its Chrome browser, share search data with competitors, and possibly divest its Android operating system. These measures could remain in place for up to a decade, overseen by a court-appointed technical committee.

The Department of Justice (DOJ) and state antitrust enforcers argued that Google’s dominance, with a 90% share of US searches, has stifled competition by controlling critical distribution channels. The DOJ aims to end deals where Google pays companies like Apple billions annually to make its search engine the default on their devices. Prosecutors also want restrictions on Google’s acquisitions in search, AI, and advertising technology, as well as provisions for websites to opt out of training Google’s AI systems.

Google has called the proposals extreme, warning they would harm consumers and the economy. Alphabet’s legal chief, Kent Walker, said the measures represent “unprecedented government overreach.” Google will present alternative proposals in December, while a trial to decide the remedies is scheduled for April.

If implemented, the proposals could reshape the tech landscape, lowering barriers for competitors like DuckDuckGo. The case highlights broader global efforts to curb the power of tech giants and promote fair competition.

EU regulators to rule on Nvidia’s Run deal by December

EU antitrust regulators are expected to announce their decision on Nvidia’s proposed acquisition of Israeli AI startup Run by 20 December. The European Commission has flagged concerns that the $700 million deal, announced in April, could harm competition in the AI and chip sectors. Nvidia must gain regulatory approval before proceeding.

The watchdog will either approve the deal, with or without conditions, or open a four-month investigation if concerns persist. The scrutiny reflects broader fears about ‘killer acquisitions’, where large firms acquire startups to stifle innovation.

Nvidia‘s processors are crucial for AI applications, including tools like ChatGPT, making this acquisition significant for the tech and AI industries. The decision will have implications for competition in rapidly evolving AI markets.

US targets Google Chrome in antitrust case

The United States Department of Justice (DOJ) is reportedly pushing for Alphabet’s Google to divest its Chrome browser, escalating efforts to curb the company’s alleged monopolistic practices in digital markets. This follows a prior ruling that Google illegally dominated the search market. The DOJ also plans to address Google’s control over AI and the Android operating system.

Google, which commands two-thirds of the global browser market, denies the claims, arguing that its success stems from user preference and robust competition. It also criticises the DOJ’s proposals as extreme and potentially harmful to consumers. Prosecutors have suggested a range of remedies, including ending exclusive search agreements with companies like Apple or enforcing Chrome’s divestiture if market competition does not improve.

A trial to finalise the remedies is set for April, with a ruling expected by August 2025. Google intends to appeal any decision to divest Chrome, citing the browser’s integral role in its ad revenue and user experience.