Japan Targets Apple and Google with New Law
Starting in December, tech giants Apple and Google will face new challenges in Japan as the country implements a groundbreaking law aimed at regulating market behaviors in the smartphone software industry. The new law, known as the smartphone software competition promotion law, specifically targets four key areas within the app market that have been deemed problematic by Japanese regulators.
One of the primary focuses of the new law is to address the dominance of Apple’s App Store and Google’s Play Store in the Japanese market. Both companies have long held a significant share of the app distribution market, leading to concerns about anti-competitive practices and limited choices for consumers. By requiring Apple and Google to correct behaviors that stifle competition, Japanese regulators hope to create a more level playing field for app developers and ultimately benefit end-users.
One key aspect of the law is the requirement for greater transparency in the app market. Apple and Google will need to disclose more information to users and developers about how apps are ranked, recommended, and reviewed within their respective app stores. This transparency aims to prevent any unfair advantage given to certain apps or developers, promoting a more open and fair app ecosystem.
Additionally, the law targets the commission fees charged by Apple and Google on app purchases and subscriptions. Both companies have faced criticism for their high commission rates, which can eat into the profits of app developers. Under the new law, Apple and Google will be required to justify their commission structures and ensure that they are reasonable and fair to developers.
Another key area of focus is the restrictions that Apple and Google place on developers regarding the use of payment systems outside of their own. Currently, both companies require developers to use their in-app payment systems, which are subject to commission fees. The new law aims to give developers more flexibility in how they handle payments, potentially reducing costs and increasing revenue for app creators.
Overall, Japan’s new smartphone software competition promotion law represents a significant step towards creating a more competitive and consumer-friendly app market. By targeting the practices of industry giants like Apple and Google, Japanese regulators are sending a clear message that anti-competitive behaviors will not be tolerated. As the law goes into effect in December, all eyes will be on how Apple and Google respond to these new regulations and how the Japanese app market evolves as a result.
apple, google, japan, smartphone market, competition law