Japan Passes New Law to Prevent Monopoly of Large Enterprises in the App Market with High Fines of 20% of Domestic Sales for Violators

Reported about 1 year ago

The Japanese Diet has passed the Smartphones Applications Competition Promotion Act, which will regulate the monopoly of large IT companies in the app market. Companies found in violation will face fines equal to 20% of their domestic sales in Japan, far exceeding current antitrust standards. The law prohibits anti-competitive practices such as forcing pre-installed software or preferential treatment of their own products by large IT companies, covering areas like operating systems, app stores, browsers, and search engines. This legislation is considered a significant milestone in Japan's digital policy and aligns with the global trend of increased regulation of major IT companies to promote competition, lower prices, drive innovation, and provide users with more choices. The law also requires businesses to report on their practices, with fines potentially increasing to 30% for those who refuse to improve compliance. Apple and Google, which have dominant market influence and significant revenue from app stores, are likely to be impacted by this law.

Source: YAHOO

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