TOKYO – The Japan Fair Trade Commission (JFTC) announced on Monday that it has designated three companies — Apple Inc., its Japanese subsidiary iTunes K.K. and Google LLC — as subjects of the smartphone software competition promotion law, a new law regulating very large IT companies in the smartphone application market.
The law regulates four areas in which the IT giants dominate the market: smartphone operating systems (OS), app stores, web browsing software and search engines. Its primary purpose will be to prohibit them from blocking the entry of other companies into the market or giving preferential treatment to their own services.
The law will come into full effect in December, from which time the designated companies will be obligated to correct any problematic behavior.
Apple will be required to allow other companies to enter the app store business. The high fees Apple charges to app distributors are considered a problem, and participation by other companies will drive price competition.
Google will be prohibited from displaying its own related services in search results in preference to similar services from other companies.
In response to the designation, Apple commented that it “has concerns about how [the law] will affect the user experience,” and Google said it would “deepen discussions with the government and others to ensure a fair business environment.”
Asia News Network/The Japan News