Japan embraces app store regulations inspired by the EU

Japan is said to be crafting regulations akin to the EU’s Digital Markets Act, aiming to require Apple and Google to allow developers to release iOS apps outside the App Store and Google Play Store.

As per a Nikkei Asia report, the Japanese government is actively developing legislation that would compel companies operating app stores to enable users to download apps from sources beyond their official app stores and support alternative payment methods.

Expected legislation is slated for the approaching year

The report indicates that the legislation, restricting the conduct of platform operators, is expected to be presented to parliament in the coming year.

“The legislation, planned for submission to parliament in 2024, aims to curb the conduct of platform operators, preventing them from exclusively retaining users within their ecosystems and obstructing competitors. It will primarily focus on four areas: app stores and payments, search, browsers, and operating systems,” as mentioned in the report.

The regulations empower the Japan Fair Trade Commission (JFTC) to impose fines on companies that fail to adhere to them, with penalties potentially amounting to 6% of the revenue generated from prohibited practices. The legislation provides developers with the flexibility to choose their preferred payment systems, relieving them of the obligation to share a portion of their earnings with Apple and Google.

According to reports, Apple is actively working towards allowing users in Europe to sideload apps on iPhones, aiming to align with the EU’s Digital Markets Act (DMA). A recent submission by the iPhone maker to the US Securities and Exchange Commission (SEC) indicates an anticipation of policy changes regarding applications operating on iOS and iPadOS.