Japan's Regulatory Authority Targets App Store Similar to European Measures

The Japan Fair Trade Commission (JFTC) has been conducting an investigation into Apple for several years, culminating in a recent report that suggests significant changes to the way the company operates its App Store in Japan. This development mirrors regulatory actions taken by the European Union under its Digital Markets Act (DMA).

The JFTC's findings indicate that Apple will be required to allow third-party marketplaces and payment systems within its App Store. The new regulations will take effect on December 18, prohibiting Apple from preferentially displaying its own apps over those developed by third parties. This means that Apple will no longer have the opportunity to exploit data collected from its operating system to gain an unfair advantage.

Moreover, the report stipulates that Apple must not unjustly delay, reject, or obstruct third-party apps, ensuring they receive equal visibility within the App Store. A significant aspect of this regulatory shift is the establishment of a 'firewall' between Apple's various teams, meaning that App Store employees will no longer have access to data that could provide an unfair competitive edge.

For the first time in Japan, the regulations will also permit third-party app marketplaces as well as payment services from external providers, either on competing app platforms or within Apple's own applications. This regulatory stance closely aligns with the objectives of the EU's DMA and reflects ongoing legal battles in the United States, particularly involving Epic Games and other developers.

While these measures primarily target Apple, Google will also be impacted, as the regulations extend to its Play Store. Despite Android's leading market position in Japan, the spotlight remains on Apple within the media coverage of this issue. The JFTC plans to implement these new rules gradually, and an awareness campaign is in the works to inform both developers and users about their rights under the new framework.

The JFTC has emphasized that it possesses the authority to impose penalties should Apple and Google fail to comply with the new regulations. This proactive approach aims to foster a more competitive and equitable digital marketplace in Japan.