Monday, June 17, 2024

Japanese govt aims to break Apple, Google app store monopolies

Japan has joined the list of countries determined to break Apple and Google’s monopoly on the app stores on their respective mobile operating systems.

Recently, the Japanese government held its seventh Digital Market Competition Conference, with the main output being a Final Report on the Competitive Evaluation of Mobile Ecosystems, reports The Register.

According to the report, mobile ecosystems have become critical infrastructure, but more options for consumers are required, as well as an equal and equitable competition environment.

The report also mentioned that Apple and Google should allow third-party payment services to access their app stores so that developers can offer users more payment options.

In addition, Japan wants the two tech giants to stop giving privileged treatment to their own apps in their digital tat bazaars, and make them easier to remove from devices instead of giving them preference.

Moreover, the report said that the reforms are intended to lower the price Japanese consumers pay for apps, possibly by encouraging third-party app stores to charge lower fees than Apple’s 30 per cent and Google’s variable rates.

Both companies claim that the fees they charge cover the costs of their app stores as well as reasonable profits.

However, neither has any real competition and both make enormous profits, regulators believe there is almost certainly a margin to be cut, the report mentioned.

In 2022, South Korea’s National Assembly passed legislation prohibiting app store operators such as Google and Apple from forcing developers to use their in-app payment systems, making it the first country in the world to do so.



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