{"id":4409060,"date":"2024-07-22T16:38:30","date_gmt":"2024-07-22T21:38:30","guid":{"rendered":"https:\/\/www.olartemoure.com\/?p=4409060"},"modified":"2024-07-22T16:38:43","modified_gmt":"2024-07-22T21:38:43","slug":"legislation-japan-reduces-monopoly","status":"publish","type":"post","link":"https:\/\/olartemoure.com\/en\/legislation-japan-reduces-monopoly\/","title":{"rendered":"New legislation in Japan reduces monopoly of dominant app stores"},"content":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row admin_label=”row” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” width=”100%” sticky_enabled=”0″][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”1.2em” text_line_height=”1.5em” text_orientation=”justified” sticky_enabled=”0″]On Wednesday, June 12th 2024, Japan enacted groundbreaking legislation aimed at ensuring that tech giants like Google or Apple provide access to third-party smartphone apps and payment systems on their platforms. This law represents a significant move to bolster fair competition, enhance consumer choice, and reduce monopolistic practices by dominant digital platform operators.[\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”1.2em” text_line_height=”1.5em” text_orientation=”justified” sticky_enabled=”0″]<\/p>\n

Key Provisions of the Legislation<\/span><\/h2>\n

[\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”1.2em” text_line_height=”1.5em” text_orientation=”justified” sticky_enabled=”0″ custom_margin=”||0.3em||false|false”]<\/p>\n

1. Access to Third-Party Apps:<\/strong><\/strong><\/h3>\n

[\/et_pb_text][et_pb_blurb title=”Mandatory Inclusion: ” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||1em||false|false”]<\/p>\n

Dominant app stores are required to allow third-party apps on their platforms without undue restrictions or favoritism towards their own apps.<\/p>\n

[\/et_pb_blurb][et_pb_blurb title=”Fair Treatment:” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||||false|false”]<\/p>\n

The law ensures that third-party apps are given equal visibility and opportunities compared to those offered by the platform operators.<\/p>\n

[\/et_pb_blurb][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”1.2em” text_line_height=”1.5em” text_orientation=”justified” sticky_enabled=”0″ custom_margin=”||0.3em||false|false”]<\/p>\n

2. Payment Systems:<\/strong><\/h3>\n

[\/et_pb_text][et_pb_blurb title=”Alternative Payment Options:” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||1em||false|false”]Tech giants must permit the use of third-party payment systems, allowing app developers and consumers to choose their preferred payment methods.[\/et_pb_blurb][et_pb_blurb title=”Fee Regulations:” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||||false|false”]<\/p>\n

The legislation limits the fees that platform operators can charge for transactions made through third-party payment systems.<\/p>\n

[\/et_pb_blurb][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”1.2em” text_line_height=”1.5em” text_orientation=”justified” sticky_enabled=”0″ custom_margin=”||0.3em||false|false”]<\/p>\n

3. Transparency and Accountability:<\/strong><\/h3>\n

[\/et_pb_text][et_pb_blurb title=”Clear Guidelines:” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||1em||false|false”]Platforms must publish transparent guidelines for app inclusion and payment system integration, ensuring fair and consistent application of rules.[\/et_pb_blurb][et_pb_blurb title=”Regular Audits:” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||||false|false”]<\/p>\n

The law mandates regular audits and reports to ensure compliance, with significant penalties for non-compliance.<\/p>\n

[\/et_pb_blurb][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”1.2em” text_line_height=”1.5em” text_orientation=”justified” sticky_enabled=”0″]<\/p>\n

Impact on the Japanese market and industry to domestic and foreign companies and consumers:<\/span><\/h2>\n

[\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”1.2em” text_line_height=”1.5em” text_orientation=”justified” sticky_enabled=”0″ custom_margin=”||0.3em||false|false”]<\/p>\n

1. Enhanced Competition:<\/strong><\/strong><\/h3>\n

[\/et_pb_text][et_pb_blurb title=”Leveled Playing Field:” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||1em||false|false”]Smaller app developers and payment system providers will benefit from a more leveled playing field, increasing innovation and diversity in the digital market.[\/et_pb_blurb][et_pb_blurb title=”Market Entry:” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||||false|false”]Reduced entry barriers will encourage new players to enter the market, fostering a more competitive environment.[\/et_pb_blurb][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”1.2em” text_line_height=”1.5em” text_orientation=”justified” sticky_enabled=”0″ custom_margin=”||0.3em||false|false”]<\/p>\n

2. Consumer Benefits:<\/strong><\/h3>\n

[\/et_pb_text][et_pb_blurb title=”Increased Choice:” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||1em||false|false”]Consumers will have access to a wider range of apps and payment options, improving their overall user experience.[\/et_pb_blurb][et_pb_blurb title=”Lower Costs:” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||||false|false”]The availability of alternative payment systems may lead to lower transaction fees and costs for consumers.[\/et_pb_blurb][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”1.2em” text_line_height=”1.5em” text_orientation=”justified” sticky_enabled=”0″ custom_margin=”||0.3em||false|false”]<\/p>\n

3. Regulatory Compliance:<\/strong><\/h3>\n

[\/et_pb_text][et_pb_blurb title=”Operational Changes:” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||||false|false”]<\/p>\n

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.<\/p>\n

[\/et_pb_blurb][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”1.2em” text_line_height=”1.5em” text_orientation=”justified” sticky_enabled=”0″ custom_margin=”||0.3em||false|false”]<\/p>\n

4. Global Implications:<\/strong><\/h3>\n

[\/et_pb_text][et_pb_blurb title=”Cross-Border Impact:” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” content_max_width=”100%” header_text_color=”#003366″ header_font=”|800|||||||” header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″ custom_margin=”||||false|false”]International tech companies operating in Japan will need to align their global practices with the new regulations, potentially affecting their operations in other markets.[\/et_pb_blurb][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”1.2em” text_line_height=”1.5em” text_orientation=”justified” sticky_enabled=”0″]In conclusion, the new legislation enacted by Japan to ensure access to third-party apps and payment systems on dominant digital platforms marks a significant step towards promoting fair competition and consumer choice. While tech giants will face increased regulatory scrutiny and compliance costs, the long-term benefits for consumers, smaller developers, and the overall market are substantial fostering innovation, more options for consumers, and fair competition.<\/p>\n

This law not only strengthens Japan’s digital market but also joins the precedent set by the European Commission\u2019s Digital Markets Act<\/a> for global digital market regulation.<\/p>\n

WOULD YOU LIKE TO KNOW MORE?<\/span><\/p>\n

Consult with our Consumer Law and Unfair Competition department or our Asia office in Tokyo at asia@olartemoure.com<\/a>.[\/et_pb_text][et_pb_text _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” text_font=”|800|||||||” text_text_color=”#003366″ text_font_size=”2em” text_line_height=”1.5em” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n

Our Experts<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” column_structure=”1_2,1_2″ width=”100%” hover_enabled=”0″ sticky_enabled=”0″][et_pb_column _builder_version=”4.27.0″ _module_preset=”default” type=”1_2″ theme_builder_area=”post_content”][et_pb_blurb title=”Carlos Parra” image=”https:\/\/www.olartemoure.com\/wp-content\/uploads\/2015\/11\/CAP.png” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” alt=”Carlos A. Parra” title_text=”CAP” link_option_url=”https:\/\/www.olartemoure.com\/en\/team\/carlos-a-parra\/” link_option_url_new_window=”on” icon_placement=”left” image_icon_width=”90px” header_font=”|700|||||||” header_level=”h5″ header_text_color=”#003366″ header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.6em” content_max_width=”100%” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n

Partner | Head of
Asia Office<\/p>\n

[\/et_pb_blurb][\/et_pb_column][et_pb_column _builder_version=”4.27.0″ _module_preset=”default” type=”1_2″ theme_builder_area=”post_content”][et_pb_blurb title=”Santiago Lombana” image=”https:\/\/www.olartemoure.com\/wp-content\/uploads\/2022\/10\/DSL.jpeg” _builder_version=”4.27.0″ _module_preset=”default” theme_builder_area=”post_content” alt=”Santiago Lombana” title_text=”DSL” link_option_url=”https:\/\/www.olartemoure.com\/en\/team\/daniel-santiago-lombana\/” link_option_url_new_window=”on” icon_placement=”left” image_icon_width=”90px” header_font=”|700|||||||” header_level=”h5″ header_text_color=”#003366″ header_font_size=”1.1em” body_font_size=”1.1em” body_line_height=”1.6em” content_max_width=”100%” hover_enabled=”0″ sticky_enabled=”0″]Antitrust and Consumer
\nLaw Coordinator[\/et_pb_blurb][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

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