Japan is taking measures to rein in the dominance of tech giants Apple and Google in the country’s app market. The government has announced plans for new regulations that would require these companies to allow outside app stores and payment systems on their operating systems. The legislation, set to be introduced next year, aims to promote fair competition by preventing platform operators from keeping users confined to their ecosystems and blocking out competitors. The law would empower the Japan Fair Trade Commission to impose fines for violations, potentially amounting to around 6% of revenue earned from these anti-competitive practices.
This decision by Japan comes at a time when both Apple and Google are facing antitrust cases in other countries. Just recently, Google agreed to pay $700 million to settle a case involving its Play store, which concluded a lawsuit filed by the US government and several states in 2020. As part of the settlement, Google will allow app and game developers in the US to implement alternative billing options alongside its own system for in-app purchases.
Meanwhile, Apple has reportedly offered to allow competitors access to its tap-to-pay mobile wallet system. This move could potentially resolve an ongoing European Union antitrust case against the company and help it avoid a substantial fine. The EU had accused Apple of blocking competitors’ access to near-field communication (NFC), thereby making it difficult for other companies to offer competing services on Apple devices.
The global tech industry has been increasingly under scrutiny for potential anticompetitive behavior, and several countries, including the United States and the EU, are taking steps to regulate these companies and promote a more level playing field. With Japan now joining the fray, it seems that tech giants like Apple and Google may face increased scrutiny and potential consequences for their dominance in key sectors such as app stores and payment systems.
As developments unfold, it remains to be seen how these new regulations will impact the operations and business models of Apple and Google in Japan. Nevertheless, this latest move by the Japanese government underscores a growing global trend to curb the influence of tech giants, promote fair competition, and protect the interests of consumers and rival companies alike.
