Japan Plans Regulation to Curb Google, Apple App Stores Dominance

Japan is reportedly working on a regulation that would require Google and Apple app stores to allow third-party platforms and their billing systems.

The new regulation would ask Apple and Google to allow outside app stores and payments on their mobile operating systems, reports Nikkei Asia.

The move is aimed at curbing their monopolies in the Japanese market. According to the report, the legislation, slated to be sent to the parliament in 2024, would restrict moves by platform operators to keep users in the operators' own ecosystems and shut out rivals.

The bill would focus on four areas -- app stores and payments, search, browsers, and operating systems, the report mentioned.

The bill would empower the Japanese Fair Trade Commission to fine violators and likely only impact foreign companies, according to Nikkei Asia.

"If this is modelled on existing antitrust law, the penalties would generally amount to around 6 per cent of revenue earned from the problematic activities,” said the report.

Currently, in-app payments must go through Apple's system, which takes a commission of up to 30 per cent.

Although Google allows third-party app distribution platforms, it still requires apps to use its billing system.