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Japan is next country to target Google, Apple's app store dominance

Regulations would force the tech giants to add third-party billing systems on their app stores

(Web Desk) - Japan's parliament is set to debate on legislation that could open up Google and Apple's app store ecosystems, following a decision in the U.S. that named Google’s Play Store and payment systems as an illegal monopoly.

According to Nikkei, Japanese lawmakers are preparing to crack down on four areas in the new year: app stores and payments, search, browsers and operating systems.

The aim is to allow third parties to open up their own app stores on mobile operating systems, and to use their own payment systems on Google and Apple's own app stores.

If all goes as planned, the Japan Fair Trade Commission will be able to impose fines totaling around 6% of revenue for any violations.

The exact numbers for fines, as well as the benchmarks set by the Japanese government on the revenue and users a company must have to be affected by regulations, will be revealed this spring.

Global companies like Apple and Google are likely to be the first affected by regulations, as they will almost certainly meet the criteria. It is unclear if the regulations will prompt either company to open up its rules globally, as Apple has done with its hardware following increased scrutiny in the EU.

Japan's regulations wouldn't just targeted at the big guys — new app stores or payment methods will have to meet certain privacy and security standards to be allowed.

Apple and Google’s App Store policies have drawn scrutiny from lawmakers around the world. South Korea warned in October that the tech giants could suffer multi-million dollar fines if they don’t change their policies.

Beyond Google's app store being ruled a monopoly, Apple is also currently appealing a U.S. court decision that would allow users to purchase content within an app without using Apple’s payment system.

 

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