According to a report by Nikkei Asia, Japan is preparing new regulations that will force Apple and Google to allow third-party app stores and payments on their mobile platforms.
The legislation, aimed at restricting the tech giants’ dominance in the Japanese market, is expected to reach the parliament in 2024.
The new laws, if implemented, will prevent platform operators from excluding competitors in app stores, payments, search, browsers, and operating systems.
The key focal points of the impending legislation include penalties enforced by the Japan Fair Trade Commission, potentially amounting to around 6% of the revenue.
Apple currently restricts app downloads to its App Store, taking up to a 30% cut from in-app payments. Google, meanwhile, demands the use of its billing system.
Such control results in higher costs for users compared to PC services, strengthening these companies’ market dominance.
The legislation therefore aims to compel these companies to allow third-party app stores and payment systems, provided they meet stringent security and user privacy standards.
Japanese companies are anticipated to gain the ability to operate game stores on iOS devices and leverage payment systems with reduced fees offered by local fintech enterprises.
Projections by the Ministry of Internal Affairs and Communications estimate Japan’s mobile app market to expand to $29.2 billion by 2023.
The legislation’s purview also extends to search engines, intending to bar preferential treatment, such as Google promoting its proprietary tools consistently in search results.
This proactive stance by Japan aligns with similar measures undertaken by the European Union, exemplified by the Digital Markets Act.
