Japan could force Apple to allow third-party app stores

Japan is preparing a special bill that could force Apple and Google to allow third-party app stores in their software ecosystems.

Apple and Google have the highest share in the mobile operating systems with iOS and Android respectively.

According to Nikkei Asia, the Japanese government came up with this rule to curb abuse of their dominant position in the Japanese market.

In this regard, legislation has been prepared to move in parliament in 2024 that would prohibit platform operators from enclosing their ecosystem for competitors.

This bill focuses on key areas including app stores, payments, search, browsers, and operating systems. This legislation also aims to propose sanctions and fines on companies for violations.

If any of the companies violate related rules, the penalties could go upto 6% of their revenue but a specific category of penalties is yet to be decided.

For now, Apple only allows app downloads from its App Store and there’s no support for third-party stores in any Apple devices.

Apple App Store

With that being said, app developers need to add a payment system with Apple’s In-app purchase system, which secures a 30% cut for Apple for each IAP payment.

Unlike Apple, Google allows third-party store installation on Android devices but app developers must use its in-app billion services.

Such tactics could force users to pay more on mobile platforms for the same content as compared to the web version.

To an estimate, Japan’s mobile app market is likely to expand to $29.2 billion in 2023, it’s around a 50% increase as compared to 2018.

Aside from app markets, the search-related provisions will bar search engines from prioritizing their services or products in search results.