Japan is preparing to introduce regulations that would force Apple and Google to allow alternative app stores and impose fines over antitrust issues over operating system market share and prioritizing search results. Japan has previously asked Apple to allow third-party app stores, but Apple has tried to oppose the plan.
According to Nikkei Asia, if the Japanese Diet passes the proposed regulations in 2024, Japan’s Fair Trade Commission (FTC) will be allowed to impose fines of up to 6% of revenue on companies that violate the law.
Further details about the app store have yet to be determined. There is currently little further information about the FTC's focus on browsers, search and other aspects of the operating system.
However, the intention behind focusing on search is to prevent companies like Apple or Google from giving their own services or products preferential treatment.
Although not yet confirmed, the new regulations are likely to also address the Japanese government's concerns about taxing developers. In November 2023, there were reports that the Japanese government was considering taxing Apple and Google directly because it is difficult to tax app developers outside Japan.
Assuming parliament passes the laws, the Japanese government will decide which companies any or all of its legislation will apply to. Nikkei Asia said the laws are expected to apply to multinationals, not Japanese companies.
Apple did not comment on Japan's latest move.