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https://asoworld.com/blog/japan-set-to-break-apple-s-app-store-monopoly-with-new-antitrust-law

Japan Set to Break Apple's App Store Monopoly with New Antitrust Law

Japan is set to introduce antitrust legislation aimed at breaking the dominance of Apple and Google in the digital market, mirroring the EU's Digital Markets Act.

Posted: Dec 29 2023
Updated: Feb 4 2024

Home Blog App Store News Japan Set to Break Apple's App Store Monopoly with New Antitrust Law

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Japan Set to Break Apple's App Store Monopoly with New Antitrust Law

In a groundbreaking move, Japan is gearing up to introduce antitrust legislation that could dramatically alter the digital marketplace for tech behemoths like Apple and Google.

Taking cues from the European Union's rigorous Digital Markets Act, the Japanese Fair Trade Commission is targeting the duopoly's control over app stores, payment systems, and more.

Japan's Fair Trade Commission Takes Action

Drawing Inspiration from the EU

The Japanese government is taking a firm stance against the monopolistic practices of technology giants.

By crafting a law similar to the European Union's Digital Markets Act, Japan is signaling its commitment to fostering a more competitive digital environment. The new legislation is expected to challenge the status quo, paving the way for alternative app stores and payment methods.

The Scope of the New Regulation

The impending regulation is set to address a wide array of issues related to Apple and Google's dominance. It will likely mandate the allowance of app sideloading, a method that lets users download apps without going through an official app store, on devices like iPhones and iPads.

iPhone Sideloading Set to Transform EU App Market in 2024


Enforcement and Penalties

In an effort to ensure compliance, Japan's proposed law includes stringent penalties for any breach of the rules. Companies could face fines of up to six percent of their revenue generated from activities deemed problematic by the authorities.

Implications for Apple & Google

A Shift in Market Dynamics

The legislation, if passed, is expected to introduce a seismic shift in how tech giants operate within Japan. By allowing consumers to access apps outside of the traditional app stores, it could spur innovation and competition, potentially leading to better services and lower prices.

The Timeline for Change

The Fair Trade Commission is diligently working on finalizing the legislation by spring. However, the bill will need to pass through parliament in 2024 before it can be enforced, suggesting that any market changes will not be immediate.

A Global Trend?

Japan's move echoes a growing global sentiment that seeks to curtail the overwhelming power of tech corporations.

With the European Union already setting a precedent with the DMA, it's clear that international regulators are increasingly willing to take bold steps to ensure fair competition in the digital landscape.

Apple Anticipates App Store Policy Changes Due to EU's Digital Markets Act

Editor's Comments

The development of this legislation by Japan's Fair Trade Commission is a clear indication of the global momentum towards reining in the power of tech giants.

As we observe the unfolding of events, it's evident that the balance of power in the tech industry is on the cusp of a significant shift. The proposed law, with its potential to disrupt the established order, underscores a pivotal moment in the evolution of digital market regulation.

Japan's pursuit of a more equitable digital marketplace aligns with international efforts to democratize technology and empower consumers. The country's decisive action could inspire other nations to follow suit, potentially leading to a global overhaul of how digital services are provided and managed.

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