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Google and Apple both require mobile apps to use their payment systems.

After the US and Europe achieved success in the fight against the monopoly of Big Tech in the software sector, Japanese lawmakers decided to take appropriate measures accordingly.

From 2024, Japan plans to impose fines on Apple and Google for abusing their monopoly in distributing mobile apps and using payment systems.

Current Japanese law allows antitrust authorities to fine companies that abuse monopolies up to 6 percent of revenue from the wrongdoing.

In comparison, in the US, fines can be as high as 10% of a company’s total revenue for the fiscal year. Google recently caved in, voluntarily accepting a $700 million fine.

A new bill being submitted to the Japanese parliament would focus on several areas of misconduct by mobile software distributors: app stores, payments, search and operating systems, and browsers.

Google and Apple will not have the right to impose their services on users and prioritize their search results. Like the US and Europe, Japan will seek to ensure that domestic app developers have the opportunity to promote their products within the Apple ecosystem.

Google and Apple will also be required to offer Japanese users the option to choose payment systems within apps.

Apple's current 'commission' payment can be as high as 30% and clearly causes damage to users as well as independent developers.

Despite allowing installation of apps on Android devices from third-party sources, Google has not been flexible when it comes to payments.

If the bill is approved by the Japanese government, domestic app developers will have the opportunity to install their apps on Apple devices and use its own payment system.

Japan's mobile app market is estimated to grow by one and a half times to $29.2 billion between 2018 and 2023.

New digital services laws in the US and Europe are drastically regulating the operations of Big Tech, so the formation of similar policies in all major markets is expected to be an inevitable process.

(according to ANK)