Japan is reportedly taking steps to enact new regulations that would require major tech companies like Google and Apple to allow app downloads from sources outside of their official app stores. These regulations, expected to be submitted to parliament next year, come as governments around the world push for more openness and competition in the app market. The move by the Japanese government aims to stimulate competition and prevent the abuse of the tech giants’ dominant position in the Japanese market.
One of the key aspects of the proposed regulations is to allow users to download apps from third-party sources, rather than solely relying on Google Play or the App Store. This would give users more options and freedom in choosing the apps they want to install on their devices. It would also open the door for alternative payment methods, allowing users to transact with local payment systems that may have lower service charges.
The envisaged legislation is expected to go beyond app stores and encompass other areas such as search, browsers, and operating systems. If approved, these regulations would empower the Japan Fair Trade Commission (JFTC) to take action against companies for antitrust issues. The JFTC would have the authority to impose fines of up to 6 percent of the revenue generated from any illegal activities.
Similarities to the European Union’s Digital Markets Act
Japan’s proposed antitrust legislation appears to have similarities to the European Union’s Digital Markets Act (DMA). The DMA, set to come into full force in 2024, targets companies with large user bases and substantial market capitalization. It requires gatekeeper companies like Apple to allow developers to publish their iOS apps outside of the App Store. Apple, in response, is reportedly working on enabling users in the European Union to sideload iPhone apps. An upcoming iOS version is expected to support app sideloading in select regions.
If these regulations become law, Japanese companies may be able to establish their own third-party app stores on iOS and Android platforms, promoting greater competition and diversity of apps. Developers would also have the option to choose payment systems offered by local firms, potentially reducing service charges. While the full details of the regulations are yet to be disclosed, it is expected that they will provide a more level playing field for both tech giants and smaller players in the market.
Japan’s efforts to introduce new regulations targeting big tech giants like Google and Apple reflect a global trend of increasing scrutiny and calls for greater fairness in the app market. By challenging the dominance of official app stores and promoting alternative sources and payment systems, Japan aims to foster competition and promote innovation. The impact of these regulations, if approved, could ripple beyond Japan’s borders and influence the global tech industry as a whole. It remains to be seen how these proposed regulations will be received and what their final form will look like, but their potential to reshape the app market is undeniable.
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