Japan Enacts Law Mandating Access For Third-Party Apps On Tech Giants
On 12 June, Japan passed legislation mandating that tech giants like Google and Apple grant access to third-party smartphone
By: : Linda John
Update: 2024-06-12 09:45 GMT
Japan Enacts Law Mandating Access For Third-Party Apps On Tech Giants
On 12 June, Japan passed legislation mandating that tech giants like Google and Apple grant access to third-party smartphone apps and payment systems on their platforms or face substantial fines. This law, akin to the European Union's Digital Markets Act (DMA), aims to ensure fair treatment by making operating systems, browsers, and search engines accessible to all users.
"The EU has already taken early steps and implemented new regulations," stated a statement from the Japan Fair Trade Commission.
Violators found engaging in anti-competitive practices will be fined up to 20 percent of their revenue per offending service in Japan, with penalties increasing to 30 percent for persistent violations.
Prior to the parliamentary vote, Shinji Morimoto, chair of the upper house committee on economy and industry, underscored the necessity of a new legal framework in Japan to align with the digital markets of the United States and Europe. The law was approved by Parliament's upper house without amendments.
Morimoto clarified that the legislation "prohibits acts that may restrict competition related to specified software," without directly naming tech giants like Google or Apple, commonly referred to as a "duopoly" in the smartphone app industry.
In April, government spokesman Yoshimasa Hayashi reaffirmed Japan's commitment to enhancing competition in software markets such as app stores, aiming to prioritize consumer choice while maintaining security. The law is expected to take effect by the end of 2025.
Meanwhile, the EU's DMA seeks to regulate major tech firms like Apple, Meta, and Microsoft to ensure fair competition. Apple has raised concerns about potential risks to user privacy and security under the new regulations.
The DMA imposes specific obligations on large tech companies, aiming to foster fair competition. In March, the European Commission launched its investigation into Apple under the DMA framework.