Tokyo: On Wednesday ( Jun 12 ), the government of Japan passed legislation to require tech giants like Google and Apple to grant access to third-party mobile applications and payment systems in order to avoid paying significant fines.
Similar to the new Digital Markets Act of the European Union, the law mandates that they act pretty and create operating systems, computers, and search engines available to everyone.
Operators in Japan will be fined 20 % of their revenue for each offending service, rising to 30 % if they do n’t stop. Behaviour that is deemed anti-competitive will result in operators being fined 20 % of that revenue.
In a statement from the Japan Fair Trade Commission, it was stated that” the EU has now taken first steps and implemented new laws.
A new legal foundation is required in the Chinese market to allow the online platforms users of Japan, the United States, and Europe to connect their work and demand fair rivals from the platforms they use.
Parliament’s lower house approved the rules with no revisions on Wednesday.
Ahead of the ballot by lawmakers, Shinji Morimoto, head of the lower house committee on market and economy, said the costs “prohibits acts that may hinder competition related to specified software”.
He did not directly mention technology firms like Apple or Google, which are occasionally referred to as “duopoly” in the world of smartphone apps.
In April, government official Yoshimasa Hayashi said Japan had “improve the dynamic culture” for applications such as application stores to “realise consumer choice, while also ensuring security”.
According to Kyodo News, the law is anticipated to become effective by the year 2025.
Apple has criticised the new law, claiming it risks putting users ‘ privacy and security at risk. The EU claims that its legal armoury, the Digital Markets Act ( DMA ), which aims to bring big tech to justice, will result in fairer competition.
The DMA targets the biggest tech companies in the world, including Apple, as well as those that include Meta and Microsoft, all of whom must adhere to a list of requirements.
The European Commission launched its first investigation into Apple under the DMA in March.