Key Provisions of the Legislation
1. Access to Third-Party Apps:
Mandatory Inclusion:
Dominant app stores are required to allow third-party apps on their platforms without undue restrictions or favoritism towards their own apps.
Fair Treatment:
The law ensures that third-party apps are given equal visibility and opportunities compared to those offered by the platform operators.
2. Payment Systems:
Alternative Payment Options:
Fee Regulations:
The legislation limits the fees that platform operators can charge for transactions made through third-party payment systems.
3. Transparency and Accountability:
Clear Guidelines:
Regular Audits:
The law mandates regular audits and reports to ensure compliance, with significant penalties for non-compliance.
Impact on the Japanese market and industry to domestic and foreign companies and consumers:
1. Enhanced Competition:
Leveled Playing Field:
Market Entry:
2. Consumer Benefits:
Increased Choice:
Lower Costs:
3. Regulatory Compliance:
Operational Changes:
Dominant platforms will need to make significant adjustments to their business practices, including updating app store policies and integrating third-party payment systems. These changes may imply initial costs, nevertheless, long-benefits are expected to outweigh these expenses.
4. Global Implications:
Cross-Border Impact:
This law not only strengthens Japan’s digital market but also joins the precedent set by the European Commission’s Digital Markets Act for global digital market regulation.
WOULD YOU LIKE TO KNOW MORE?
Consult with our Consumer Law and Unfair Competition department or our Asia office in Tokyo at asia@olartemoure.com.
Our Experts
Carlos Parra
Partner | Head of
Asia Office
Santiago Lombana
Law Coordinator