The Japanese government has joined the growing list of countries which are aiming to challenge the monopoly held by Apple and Google over their respective app stores. The government recently conducted its seventh Digital Market Competition Conference, which resulted in a Final Report on the Competitive Evaluation of Mobile Ecosystems, as reported by The Register.
According to the report, mobile ecosystems have become crucial infrastructure, but there is a need for more consumer options and a fair competition environment. The Japanese government recommends that Apple and Google allow third-party payment services to access their app stores, enabling developers to offer users a wider range of payment options.
Furthermore, Japan seeks to end the preferential treatment given to Apple and Google's own apps within their app stores. They advocate for an easier process of removing these pre-installed apps from devices. The goal is to create a more level playing field for all developers.
The report also aims to reduce the prices Japanese consumers pay for apps by encouraging third-party app stores to charge lower fees than Apple's standard 30% and Google's variable rates. While Apple and Google argue that their fees cover the costs of maintaining their app stores and generate reasonable profits, regulators believe there is room to reduce these fees, considering the lack of genuine competition and the substantial profits both companies make.
South Korea took the lead in 2022 by passing legislation that prohibits app store operators, including Google and Apple, from forcing developers to use their in-app payment systems. This made South Korea the first country in the world to take such action.
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Japan's initiative aligns with the global push to promote fair competition and provide more options for developers and consumers within the mobile app ecosystem. As governments worldwide continue to scrutinize app store practices, it remains to be seen how Apple and Google will respond to these calls for change in the interest of fostering a more open and competitive app market.
