Andrew Orr
Japan is poised to dramatically increase the penalties for tech giants accused of monopolistic practices like Apple.
In an extensive global effort to limit the power of major technology companies, the Japanese government plans to revise its antitrust regulations. The strategy could lead to fines for anti-competitive activities such as unfairly restricting access to app markets, potentially increasing to 20% of pertinent sales.
Similar actions have been undertaken in other regions, including the European Union.
Japan's new proposal amplifies the current penalties, which cap 6% of sales, signaling the country's commitment to enforcing competitive practices in the digital economy. Its adjustment aligns with actions seen in other regions, including the European Union, according to Nikkei Asia.
The backdrop of Japan's regulatory shift is a series of international debates and legal challenges focusing on the business practices of major tech companies. Apple, in particular, has been at the center of these discussions.
Japan made its intentions known to impose fines on Apple in December. The purpose is to ensure that companies like Apple and Google don't favor their services or products unfairly.
Similar to the EU, the forthcoming Japanese regulations, mobile platform operators must permit alternatives to their app stores and payment systems, facilitating a more open digital market. The change is designed to dismantle the barriers favoring incumbent platforms over smaller developers and competitors.
For those who persist in anti-competitive conduct, the fines could escalate to a staggering 30% of sales. This underscores the severity of the new policy and its determination to combat continuous anti-competitive behavior.
Japan's proposal might catalyze further regulatory reforms worldwide as countries reassess their approaches to digital market monopolies. The Fair Trade Commission plans to provide a comprehensive draft of the proposal to legislative groups, including the economy and industry unit of the ruling Liberal Democratic Party.
The commission intends to introduce the bill to parliament within a few weeks.
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13 Comments
Apple could either
I favour option three.
Japan is one of the few countries in which Apple could be seen as a monopoly given the market share. It will NOT leave Japan so really it is about determining if Apple broke current laws or Apple needs to be controlled by laws yet to be written. It has become a common theme across the world where (my opinion) a vocal minority of users and developers have pushed government legislators to punish Apple for both its success and its 'dig in your heels' responses. I think most users and many developers, did not care that much about any of this, or shrugged their shoulders at the status quo. I never needed an alternative app store or a Gameboy emulator. The average cost of an app is only 79 cents. Spotify and Epic not going to give any deals. I know how to get subscriptions using developer web sites... But public opinion and government regulator blood (money from Apple) thirst have now escalated beyond PR containment. Could this have been averted if Apple had made changes to anti steering and app stores and commissions? I am not actually sure, but I doubt it. But now Apple is having to react and defend and ultimately, change. But I have my doubts that iOS or Apple innovation will be better by all this.
Agree. I also think the American justice department did a disservice to an American corporation by uncorking this pandora box of monopoly hallucination. And in the end hurting this large chunk of the economy.
Every nation is now wanting a piece of the Apple. Looks like Apple’s legal department is going to be working overtime.
I think Apple needs to launch a large scale PR offensive to take the high ground away from government arguments. I know Apple historically has avoided this but after the battery-gate class action, the courts don’t have the technological prowess to sort through these issues.
Why do governments waste both time and taxpayer money on frivolous matters like this when there are far more pressing matters that require their attention?
I've lived in Japan 30 years and have seen the stupidity first hand. Every time they raise the consumption tax, things only get worse. New regulations make products more expensive and less popular as a result. Tax and spend is the norm here. There are many good things about Japan, but most of that stems from the way common people think and act, not policies by the elected leadership.
Right now, the Japanese consumer is dealing with a super weak Yen along the lines of US$1 to ¥154, which makes things more expensive, and all companies which import (and there are many) must pay much more for their imported goods, passing that along to the consumer. (FYI, the ideal rate is about $1 to ¥110.) We therefore need a stronger Yen than now, not governmental intervention about silly app stores! This is sheer madness. It's as crazy as the government demanding companies raise salaries, when they are doing all they can do right now just to stay afloat! Sadly, populations like Japan remain silent and just allow their government to do as they like. This is nothing exclusive to Japan, of course. But since I live in Japan, what goes on here matters to me.
Leave easy targets like big tech alone and focus on the most pressing matters that affect most people. App store policies and who's a "monopoly" today don't matter a hill of beans!