Japan is set to introduce new regulations that would challenge the dominance of Google and Apple’s app stores in the country. The regulation, expected to be presented to parliament in 2024, would require the tech giants to allow third-party platforms and their billing systems. This move is aimed at curbing the monopolies held by Google and Apple in the Japanese market.
The proposed legislation would focus on four key areas: app stores and payments, search, browsers, and operating systems. By compelling platform operators to enable outside app stores and payments on their mobile operating systems, Japan hopes to create a more competitive environment and prevent these companies from excluding potential rivals.
The bill empowers the Japanese Fair Trade Commission to impose fines on violators, with foreign companies likely to be the primary target. The penalties, if modeled after existing antitrust laws, could reach up to 6 percent of revenue generated from the problematic activities, according to reports.
At present, Apple’s system mandates that in-app payments go through their platform, resulting in a commission of up to 30 percent. Although Google allows third-party app distribution platforms, it still requires apps to utilize its billing system.
By introducing these regulations, Japan aims to promote fair competition and provide more choices for consumers. The move reflects a global trend of increasing scrutiny towards dominant tech companies and their business practices.
This development could have significant implications for both Google and Apple, as it may force them to reconsider their current policies in Japan and potentially modify their app store and payment structures.
The proposed legislation aligns with international efforts to regulate big tech companies and prevent monopolistic practices. It may serve as a noteworthy precedent for other countries seeking to address similar concerns regarding app store monopolies and payments.
With the emergence of these new regulations, it remains to be seen how Google and Apple will respond and adapt their practices in Japan. As the bill progresses through parliament and potential fines loom, all eyes will be on the tech giants and their actions in the Japanese market.
