Japan has implemented new legislation aimed at ensuring fair access to third-party smartphone apps and payment systems on platforms operated by tech giants like Google and Apple. This move, similar to the European Union’s Digital Markets Act, mandates that these companies act fairly by making their operating systems, browsers, and search engines accessible to all developers.
Under the new law, operators found engaging in anti-competitive behavior could face significant fines, amounting to 20 percent of their revenue for each offending service, escalating to 30 percent if violations persist.
A statement from the Japan Fair Trade Commission highlighted the need for a legal framework in Japan that aligns with efforts in the United States and Europe to promote fair competition among digital platform operators.
The legislation, passed by the Diet’s upper house without amendments, prohibits practices that could restrict competition related to specified software, although it does not directly name specific companies such as Google and Apple, often referred to as dominant players in the smartphone app market.
Shinji Morimoto, chair of the upper house committee on economy and industry, emphasized that the bill aims to enhance the competitive environment for software like app stores, supporting consumer choice while safeguarding security concerns.
According to reports, the new law is slated to take effect by the end of 2025. The European Union’s Digital Markets Act, which similarly aims to enforce fair competition among major tech firms, has faced criticism from Apple, which argues it could compromise user privacy and security.
The European Commission has already launched investigations under the Digital Markets Act, targeting companies such as Apple, Meta, and Microsoft, underscoring a global push towards stricter regulation of big tech.