TOKYO, Feb. 10, 2023—Japan’s anti-trust government office is considering regulating Apple Inc. and Alphabet Inc. operating systems to help nudge iOS and Android app prices lower by requiring what is called ‘prior regulation’ to the two companies, government officials said Feb. 10, 2023.
The planned regulation’s details were not available. It was clearly along the lines of discussions that the Japan Fair Trade Commission’s study panel that Feb. 9, 2023 released a report named the ‘market study report on mobile OS and mobile app distribution.’ It said as many as 97% of Android apps are downloaded from Google Play even though other app stores of Amazon and Samsung offer same apps to consumers. Apple disables downloading iOS apps except from its App Store.
Problems that potentially violate Japan’s anti-monopoly law, JFTC said, included: ‘self-preferencing’ related to OS’s with restricting access to smartphone functions, unfavorable updates for competitors, app store management,data use generated by third developers,influencing consumer’s national choice, among many.
JFTC said it would, through prior regulation, promote consumer switching by allowing data portability and other methods, as well as promoting new OS’s and app stores.
I suspect that JFTC has borrowed most of what’s written in the report from the EU and U.S. competition authorities so expect little proactive regulatory move from them. Their knowledge about what’s happening in the real world often is outdated.
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