Following the European Union, which forced Apple to open iOS to third-party app stores, Japan is also preparing to take similar steps. The local government plans to pass new antitrust legislation that will significantly impact the operations of tech giants in the country.
Europe’s Example Inspires Other Countries
The EU has already adopted the Digital Markets Act, which requires that by March 2024, iPhone users in Europe must be able to install applications not only through the App Store. Apple has not yet explained how it will implement this requirement, but international regulators are closely monitoring the situation.
Japan has decided to follow the same scenario and is developing its own rules that will allow iOS users to install applications without involving the App Store—through so-called sideloading. Japanese legislators are working on an antitrust law that will cover several areas at once: app stores, payment systems, search services, browsers, and operating systems. After the law is passed, the Japan Fair Trade Commission will be able to impose fines on companies that violate the new norms.
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These changes will particularly affect giants like Apple and Google. They will be required not only to allow third-party app stores but also to permit the use of alternative payment systems—which is especially important for local fintech companies with lower commissions.
Developers Have Long Awaited Changes
Back in 2020, the Japanese authorities launched an investigation against major tech companies—Google, Apple, Amazon, and Facebook. One of the main complaints was Apple’s monopoly position in the mobile app market. Many Japanese developers expressed dissatisfaction with the company controlling both the distribution of applications and the payment process, while charging high commissions. The introduction of the new law will allow local companies to create their own app stores and independently choose payment services.
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Apple Will Have to Adapt
In essence, Japan is following the same path as the European Union. Both jurisdictions are demanding that Apple open its ecosystem. Although the company has repeatedly expressed concerns about user safety when installing applications from unofficial sources, it has already partially agreed to these demands. This was previously stated by Apple’s Vice President of Software Engineering, Craig Federighi. The Japanese parliament is expected to consider the bill next year. If it is passed, iPhone users in Japan will gain significantly more freedom in choosing applications and payment systems.
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