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Japan cracks down on tech titans over app stores and payments

by on27 December 2023


Google and Apple targets

Japan is set to slap new rules on tech giants like Apple and Google to stop them from ripping off users and locking out rivals on their mobile devices.

The new laws, which could be passed in 2024, would stop the platform bosses from keeping users locked into their walled gardens and blocking competitors.

The Japanese want laws to cover four areas: app stores and payments, search, browsers, and operating systems.

The Japan Fair Trade Commission could fine the rule-breakers. The fines could be up to six per cent of the money they make from the dodgy activities. The details will be sorted out this spring.

The government will decide which companies the laws apply to based on things like sales and user numbers. It is likely to hit mainly big foreign companies, with no Japanese ones in trouble.

Apple does not let users download apps on their iPhones from anywhere but its own App Store. Users also have to pay through Apple's system, which takes a third of the profits.

While Google lets users get apps from other places, it still makes them pay through its system. These tricks mean that users pay more for the same stuff or services on their mobiles than on their computers.

Last modified on 27 December 2023
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