Japan Creates Antitrust Law To Regulate Big Tech Companies

Japanese regulators prepare antitrust laws (photo unsplash)

JAKARTA Following the European Union (EU), Japanese regulators are preparing antitrust laws to regulate four aspects of major technology companies such as Apple and Google.

One of the areas regulated is the app store and payment system. From the Nikkei Asia report, regulators will require big tech companies to allow third-party app stores and payment methods for all applications.

This means that digital application stores such as the App Store and the Play Store should not prohibit app developers from using third-party payment applications. All developers can also use third-party app stores freely.

In addition, Apple must also allow sideloading or app downloads from third-party app stores and websites. So far, Apple still doesn't allow sideloading on iOS for user safety reasons.

Not only regulating app stores and their payment systems, this law is also being drafted also regulates a search system, browser usage, and operating system (OS) managed by all big techs.

Reportedly, this law will be sent next year to parliament. If approved, the Japan Fair Trade Commission (JFTC) could impose fines on companies that violate it. To date, there are no details regarding the company requirements that will be subject to these rules.

Earlier this year, Japanese regulators completed a report entitled Market Studies on Cellular OS Distribution and Cellular Apps. The results of the report show that Apple and Google are monopolizing the mobile app market.

This finding may reinforce regulatory desire to enact antitrust laws. What's more, in 2020, the Japanese government had investigated several large companies such as Google, Apple, and Facebook due to antitrust issues.