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This is how Japan targets Apple and Google to stoke competition in smartphone app payments

A government panel in Japan has announced plans to enhance competition in the smartphone app payments market, which is currently dominated by Apple and Google. To achieve this, major app store operators will be prohibited from compelling software developers to utilize the operators’ proprietary payment systems, reported Reuters.

According to Reuters, in its recently published final report on Friday, the government panel recommended that significant providers of smartphone operating systems (OS) should be mandated to provide users with secure alternatives for downloading apps, apart from relying solely on their own app stores.

Japan’s mobile OS market is predominantly shared between Apple’s iOS and Google’s Android, with both holding significant market shares. Apple exclusively permits users to download iPhone apps exclusively from its own app store, whereas both Apple and Google mandate software developers to utilize their respective payment systems, which levy commissions of up to 30%.

According to the report, the government will examine the required legislative actions, and there are plans to present a relevant bill to the parliament as soon as next year, as reported by the Asahi Shimbun daily on Saturday.

The panel consists of notable individuals such as Industry Minister Yasutoshi Nishimura and Economy Minister Shigeyuki Goto.

Meanwhile, Apple has teamed up with Google to address the issue of unauthorized use of Bluetooth tracking devices like AirTags for stalking people without their consent. Together, the tech giants are taking steps to prevent this type of behavior and ensure the safety and privacy of individuals.

Last month, Apple and Google released a proposal to establish standards aimed at preventing the misuse of Bluetooth tracking devices such as Apple AirTag and other similar tech gadgets for unwanted tracking and stalking. Samsung, Tile, Chipolo, and Pebblebee – producers of other popular tracking brands – have also endorsed the proposal, according to a joint press release by the companies.

 

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Updated: 17 Jun 2023, 05:03 PM IST

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