Japan's new law forces Google and Apple to allow sale of third-party apps

The new law prohibits Apple and Google from restricting third-party companies from selling and operating apps on their platforms beyond their own app stores

Japan passed a new law aimed at prohibiting Apple and Google from blocking the sale of apps by third-party developers on their respective app platforms (such as the App Store and Google Play Store), thereby providing users with greater options and potentially increasing competition, according to a report by Japanese news agency Kyodo News.

The law prohibits Apple and Google from restricting third-party companies from selling and operating apps on their platforms beyond their own app stores. Moreover, it mandates these platform providers to permit app developers to use their preferred payment platforms for user charges, rather than compelling them to opt for the native option.

 

The Japan Fair Trade Commission (JFTC), confirming that the law received approval from the National Diet after submission in April 2024, emphasised its goal of fostering a competitive landscape conducive to innovation and offering users a diverse array of services.

"The bill aims to develop a competitive environment in which innovation by various entities is activated through competition and consumers can select and enjoy various services created by innovation, while ensuring security, etc. with respect to software particularly necessary for the use of smartphones (mobile operating systems (OS), application stores, browsers, and search engines, collectively referred to as "Specified Software")," the Japanese regulator added.

Apple has expressed concerns regarding the potential implications of the law on the privacy and security experience of iPhone users, whereas Google has stated its commitment to collaborating with the government throughout the legal proceedings.

The report quoted Apple as saying, “We will continue our engagement with the Japan Fair Trade Commission during the implementation period... concerned about how the law will impact Japanese consumers and the secure and private iPhone experience our users have come to expect."

Google, too, released a statement following the passing of the law by the Japanese government. “We have proactively engaged with the government to explain our practices in and contributions to this dynamic and highly competitive sector. We will continue to collaborate with the government and industry stakeholders throughout this process,” the report quoted a Google spokesperson as saying.

India has also proposed a similar antitrust legislation, which presents a regulatory hurdle for technology firms by outlining stringent compliance requirements. The Centre is presently reviewing a panel's February report suggesting a new "Digital Competition Bill" to supplement current antitrust statutes.

These fresh regulations are expected to forbid major technology corporations such as Apple, Google, Meta, and Amazon from leveraging non-public user data and from showing bias towards their own products or services on their platforms. Furthermore, they would restrict these companies from limiting users' capacity to download, install, or use third-party apps in any manner.