Japan sets guidelines targeting tech giants dominating app market
The core of the guidelines issued by the Japan Fair Trade Commission is a ban on discriminatory treatment of app stores not operated by the two platform companies. If more app stores compete and lower the commissions they charge developers, app prices for users could also fall, analysts said.
Apple and Google account for over 90 percent of Japan's smartphone operating system market. Currently, app purchases and usage fee payments are effectively limited to the official stores of the two firms, restricting competition in the industry.
According to a private research company, Japan's domestic app market in 2024 was valued at about 2.4 trillion yen ($16.2 billion) from in-app purchases alone.
Opposing the guidelines, Apple said the regulations not only undermine privacy and security but also force it to provide its technology and services to competitors free of charge, potentially creating new risks.
In 2024, Japan's parliament enacted a law to regulate smartphone app stores with the aim of promoting easier market access for third-party developers, with the legislation scheduled to take full effect in December.
The new law will require that app developers be given access to OS functions like voice calls and biometric authentication. Some functions, such as email, are now restricted from connecting with external devices like smartwatches.
The guidelines, finalized after the commission solicited public comments between May and June, listed 100 specific examples of violations, including setting additional screening criteria for certain app stores.
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