Japan Plans Regulations to Break Tech Giants' App Store Monopolies: Apple and Google in the Spotlight

Key Points
  • Japan plans regulations compelling Apple and Google to allow third-party app stores, targeting potential misuse of market dominance.
  • The regulations will center on app stores, payments, search, and browsers, aiming to promote competition and prevent tech companies from restricting access to competitors.
  • Non-compliance by Apple and Google could result in a penalty of 6% of their annual revenue from platforms violating the law. Details are expected in the upcoming spring, aligning with global efforts to prevent monopolistic practices in the tech industry.
  • The Government of Japan is gearing up to introduce regulations that will mandate tech giants like Apple and Google to permit third-party app stores on their mobile operating systems, such as Android and iOS. The proposed legislation, expected to reach the parliament in 2024, aims to curb these major players' potential abuse of dominant market positions.

    According to a recent report from Nikkei Asia, Japan's forthcoming regulations will target key areas: App stores, payments, search, and browsers. The objective is to foster competition by preventing tech companies from restricting rival access.

    If these regulations align with existing antitrust laws, non-compliance by Apple and Google could result in a penalty of 6% of their annual revenue from platforms violating the law. The details of the regulations are anticipated to be finalized in the coming spring.

    It's noteworthy that Apple currently prohibits third-party app stores and restricts developers from using their billing systems. While permitting third-party app stores, Google follows a similar policy of restricting developers from using alternative payment methods. This approach has raised global concerns about the creation of monopolies in the market.

    As governments worldwide scrutinize such practices, Japan joins the effort to implement regulations to foster fair competition and break potential monopolistic control in the tech industry.

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