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Japan could be next to force third-party app stores on Apple

The Japanese Parliament is debating a proposed law that would effectively emulate the EU's Digital Markets Act and require Apple to open up the App Store.

Originally proposed in 2023, the new bill is now being officially deliberated by Parliament. According to The Japan Times, the bill is expected to be passed by both chambers of the country's Parliament.

If the bill passes into law, the intention is that it will facilitate competition and reduce app prices. Japan's government reportedly believes that Apple and Google are a duopoly, and that they charge developers high fees that are then passed on to users.

However, previous reports have claimed that should the bill pass into law, it will then be the Japanese government choice over which firms to apply it to. While it is certain to say Apple and Google must comply, it's not expected to add any Japanese firms to the list.

What happens next

The current Parliamentary session in Japan is due to conclude on June 23, 2024. If the bill does pass both the country's House of Representatives and the House of Councillors, then it becomes law.

Unlike many countries, including the US, the bill need only pass the two chambers. It does not then have to be signed into law by a President, monarch, or in Japan's case, an emperor.

Nonetheless, the law made from this bill is not expected to come into effect until some time during 2025.

The bill originates in a Competition Assessment of the Mobile Ecosystem done by the Digital Market Competition Council of Japan's Diet (the joint name for both chambers of Parliament). While Apple has not commented on the current debate in Japan's Parliament, it did previously defend itself against antitrust accusations in that assessment.



9 Comments

buku 2 Years · 7 comments

It's ridiculous. Japanese ignore SonyGame for over decade and suddenly realize they need to force iPhone open their environment for fairly completions. it's nothing up to antitrust, Japanese just want to rob other countries companies 

3 Likes · 0 Dislikes
foregoneconclusion 13 Years · 2862 comments

Just like the EU, Japan appears to be ignoring the actual history of smartphones and app stores. Apple chose 30% for the commission because it was already an accepted standard for digital stores on Windows and video game consoles. That 30% standard was in place before Android phones existed and before iPhone had a significant market share. 

So reality is basically the opposite of what the EU/Japan are claiming: it was never a high fee relative to the market and its existence wasn’t the result of high levels of market power.

3 Likes · 0 Dislikes
elijahg 19 Years · 2850 comments

Just like the EU, Japan appears to be ignoring the actual history of smartphones and app stores. Apple chose 30% for the commission because it was already an accepted standard for digital stores on Windows and video game consoles. That 30% standard was in place before Android phones existed and before iPhone had a significant market share. 
So reality is basically the opposite of what the EU/Japan are claiming: it was never a high fee relative to the market and its existence wasn’t the result of high levels of market power.

I think at the time 30% was actually really low. 

2 Likes · 0 Dislikes
danox 12 Years · 3470 comments

The Japanese are still mad about sliding down in the OS software/hardware side of tech and same applies to the EU, South Korea, and China which is why they want a free ride. Too bad the entire USA government is currently stupid on this subject and as usual will react too late years later.

3 Likes · 0 Dislikes
nubus 9 Years · 647 comments

That 30% standard was in place before Android phones existed and before iPhone had a significant market share. 

If you can add a 43% tax on all products (= take a 30% cut), then the market isn't working. Apple is being a gatekeeper. Tacit collusion is still not OK.
"

If we would not submit to an emperor, we should not submit to an autocrat of trade" - Sherman.

Reagan broke AT&T into pieces in 1982 after AT&T for years forced users to buy or rent devices at inflated prices in order to even use the network.
TicketMaster is the only outlet for Live Nation venues - same company. So... one monopoly in many regions create another monopoly.

The clean solution would be that platform vendors can't sell apps. Apple could offer free apps but all other apps would have to be bought from independent stores.

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