The Digital Markets Act (DMA), the European Union’s grand attempt to keep big tech in check, was passed in November last year. The law aims to address anticompetitive practices among technology companies,particularly the dominance of major players such as Google and Apple. For the Cupertino-based tech behemoth, compliance with the DMA means it must entertain theaudacious idea of letting users sideload apps on iOS. As these companies gear up for DMA compliance starting in 2024, Japan is also exploring the possibility of implementing similar requirements for the tech giants.
According toNikkei Asia, Japan is cooking up legislation that would make Apple and Google play nice with third-party app stores on iOS and Android, provided these alternatives are secure and respect user privacy. Japan’s regulators aren’t stopping there – the rulebook extends to payment systems and search engines too.
Apple’s go-to excuse for not letting you download apps from anywhere but the App Store has always been privacy and security. Now, Japan is apparently requiring third-party developers to add a sprinkle of privacy and security measures to their app stores.
Meanwhile, Google already lets Android users install apps from yourfavorite Play Store alternatives. But there’s a catch: third-party developers are not allowed to accept payments through alternative systems other than Google’s own billing platform. And Apple’s playing the same game on that front.
Japan’s new legislation will make Apple and Google add an alternative payment option for apps, as per Nikkei. Both tech giants usually charge a fee for every in-app purchase, so this move might cramp their software cash flow. Japan’s goal is all about stirring up competition and aiming to dial down app prices. The government is even drafting a list of no-nos to keep operating system platforms from favoring their own services and payment methods.
Japan’s got another beef with how Apple and Google’s apps come pre-installed on iPhones and Android phones. Now, the government wants these companies tomake it easy for users to kick pre-installed apps out. Plus, they can’t hog the spotlight for their services in search engines.
Regulators are apparently planning to present the legislation in the 2024 parliamentary session. If it gets the thumbs up, the Japan Fair Trade Commission gets the power to slap fines of about 6% of the revenue that rule-breakers make from their “problematic activities.” Who’s on the radar depends on factors like sales and user numbers. The FTC is working on the final draft and aims to complete it in the spring.
