Japan is readying new regulatory measures to force Apple to enable alternative app stores’ presence on iOS, and to require both Apple and Google to allow alternate billing systems on their platforms.
The move to confront the two goliaths’ monopoly on the marketplace is, according to Nikkei, coming via new legislation being sent to Japan’s parliament. Details on how potential penalties will be handled are expected to emerge in the spring.
Supporting the underdogs
Google and Apple’s mobile manoeuvres that maintain their continued control over ecosystems – such as preventing rivals from using their own billing systems, or in Apple’s case, not even allowing alternate app stores in the first place – are to be challenged.
As things stand in Japan, apps can only be downloaded on iOS via Apple’s App Store, with in-app purchases suffering the infamous 30% fee: Apple’s cut of earnings. Meanwhile, much like the West, Google systems already allow third-party platforms, but for the most part its own billing system must be used regardless.
Changes appear to be ahead for both companies, and while iOS users may fear a tear in the safety net Apple provides, the Japanese legislation specifies that third-party app stores and payments must be allowed only in cases where user privacy and security can be preserved.
In addition to app store monopolies, the legislation is looking to confront the pair’s dominance over browsers, payments and operating systems as a whole, with the Japan Fair Trade Commission to fine Google and Apple for any violations, should the legislation go to plan.
The concept of a Google and Apple monopoly is far from a Japan-only issue, with Epic Games having brought forward cases against both giants for this very reason.
Google lost its court battle with Epic, and has also lost a court case against US attorney general. The tech giant is expected to make temporary changes to the Play Store as a result, and owes a $700 million fee on top.
The UK’s CMA has raised concerns with the monopoly too, and will resume its investigation into web browsers and cloud gaming later this month.
